US: Preliminary PMIs likely to increase to 55.7 – Danske Bank

In the US, the important preliminary PMIs release for January are due out and although Markit PMI manufacturing trended up over the past six months, it is still a puzzle that the index is below the equivalent ISM manufacturing index, explains the research team at Danske Bank.

Key Quotes

“Given the big discrepancy, we think Markit PMI could rise further although the bad weather may have pulled in the other direction. We estimate an increase to 55.7 from 55.1. Since August, Markit PMI services has fallen 2.3 index points to 53.7, which we think is too much - we expect a rebound to 54.5.”