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January Services PMIs Split: UK and India Strengthen as US Holds, Europe and Canada Cool

Central banks are watching sticky services inflation.

An aerial view shows the city of Vancouver lying below the Coast Mountains range in Vancouver, British Columbia, Canada February 26, 2025. REUTERS/Chris Helgren
A pedestrian passes a cafe in Oxford, Britain, August 28, 2024. REUTERS/Hollie Adams
Construction workers work on a Taylor Wimpey housing estate in Aylesbury, Britain, February 7, 2017.  REUTERS/Eddie Keogh/File Photo
A “Help Wanted” sign hangs in restaurant window in Medford, Massachusetts, U.S., January 25, 2023. REUTERS/Brian Snyder/File Photo

Overview

  • United Kingdom: S&P Global Services PMI rose to 54.0, the fastest since August 2025, but service-sector employment fell for a 16th month as firms faced higher payroll costs and output charges accelerated; the BoE sets policy today with rates widely expected to stay at 3.75%.
  • United States: ISM Services PMI was unchanged at 53.8 as prices paid climbed to 66.6, new orders slowed and export orders contracted, reinforcing focus on services price pressures after the Fed held rates last week.
  • Eurozone: Final services PMI eased to 51.6 and the composite to 51.3, both four‑month lows, with weak new orders and flat hiring; France slipped back into contraction at 48.4 as the ECB considers sticky services costs at today’s meeting.
  • India: HSBC Services Business Activity Index strengthened to 58.5 on robust output and new orders, including firmer overseas demand, with hiring resuming modestly and input and output prices rising from recent lows.
  • Canada: S&P Global services index fell to 45.8, a third monthly deterioration, as tariffs and trade uncertainty weighed on activity and new business, though input and output price pressures eased.