The latest survey revealed a robust expansion of business activity and another strong increase in incoming new work. Meanwhile, service providers were more upbeat about the business outlook than at any time since May 2015.

Inflationary pressures eased since December, but were still among the highest seen over the past year-and-a-half. Adjusted for seasonal influences, the Markit Flash U.S. Services PMI Business Activity Index picked up to 55.1 in January, from 53.9.