U.S. economy gets off to weak start in 2023, S&P finds

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U.S. economy gets off to weak start in 2023, S&P finds
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S&P Global PMI data beat expectations but remain below breakeven levels

The numbers: The U.S. economy got off to a weak start in 2023. Business conditions contracted again in January as demand for goods and services fell for the fourth month in a row, S&P surveys showed.

The S&P Global U.S. manufacturing sector index, meanwhile, edged up to 46.7 from a 31-month low of 46.2 at the end of last year.The S&P surveys are among the first indicators in each month to assess the health of the economy.The decline in demand has helped to ease inflation since the fall, S&P found, but the cost of labor and supplies both rose in January. Companies tried to limit price increases of their own, however, to retain market share.

In a bit of surprise, executives expressed more confidence about how the economy would perform over the next year.

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