ISTANBUL

Business activity growth in the US accelerated in January to its highest level in seven months, S&P Global said in a report on Monday.

"The US services economy signaled a stronger start to the year as business activity expanded at the fastest pace since June 2023," said the report.

"Contributing to the upturn was a quicker rise in new orders. Improved demand conditions were reported in the domestic market, but new export orders also increased, rising at the steepest rate since August 2023," it added.

The S&P Global US Services PMI Business Activity Index came in at 52.5 in January, up from 51.4 in December.

The figure, however, is slightly lower than the earlier released flash estimate of 52.9.

"The key driver of faster growth was the financial services sector, where looser financial conditions tied to expectations of lower interest rates spurred greater activity in January," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

"Business optimism about growth prospects in the service sector has likewise jumped higher, encouraging further payroll growth, albeit the latter limited by labor shortages," he added.