Economic data skepticism and its potential consequences
In January 2025, the U.S. economy displayed a blend of resilience and new challenges appearing in different sectors.Trends in Business Activity and EmploymentThe S&P Global Flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 52.4 in January from 55.4 in December, reaching its lowest point since April. Even with this reduction, the index stayed above the 50 mark, suggesting ongoing expansion. The deceleration was mainly due to the services sector, whereas manufacturing saw growth for the first time in seven months, spurred by anticipated loosened regulations and reduced taxes under the current administration. Remarkably,…