S&P Global's headline Purchasing Managers' Index (PMI) rose to 50.7 in January from 48.1 in December, signalling a renewed improvement in the sector's health at the start of 2025.

A PMI reading above 50.0 indicates growth, while below that level points to a contraction.

January's figure was the highest since November 2020, driven by a pick-up in domestic market conditions and a softening of cost pressures, which helped boost sales. However, uncertainty over the sustainability of this upturn weighed on business expectations and hiring.

"The ceasefire deal between Israel and Hamas likely added confidence to markets in January," said David Owen, Senior Economist at S&P Global Market Intelligence. "That said, business expectations for the next 12 months remain subdued, showing that firms are still uncertain about economic stability over the longer term."

--Reuters--