The headline seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index (PMI) fell to a three-month low of 52.8 in January from 54.2 in December The reading was the second-weakest since July 2016 and was below economists forecast of 53.5. 

According to the report, the trend in production volumes was the weakest registered during the past two-and-a-half years and new order inflows recorded a marked slowdown in the rate of expansion. Employment fell for only the second time in the past two-and-a-half years Meanwhile, inventories of finished goods rose at the third-fastest rate in the survey history, bested only by those seen in May and December of 2018. On the price front, inflation of input prices eased to a 32-month low, despite higher raw material costs, suppliers raising their prices and the exchange rate. Average selling prices also increased at a slower pace.