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The IHS Markit manufacturing index hit a 3-month low this month, falling from 52.4 to 51.7. Meanwhile, the services PMI rose from 52.8 to 53.2, the highest level since March 2019. Any figure above 50 indicates growth, while below 50 indicates contraction.

US initial jobless claims came in below expectations last week, indicating ongoing strength in the labor market. Jobless claims rose to 211,000 for the week ended January 18, coming in at 4,000 fewer claims than forecast by economists. While hiring has slowed considerably over the last year, layoffs remain low with unemployment still at the 50-year low of 3.5%.

The sales of pre-owned homes in the US rose in the last month of 2019 by 3.6% compared to the month before. Economists had forecasts monthly gains of just 1.3% for December, a rate of 5.43 million units. Meanwhile, sales rose 10.8% in the 12 months through December compared to the year before.

The University of Michigan released its consumer sentiment index for January on Friday, indicating ongoing upbeat sentiment. While the overall index slipped down a few points, the data supports the viewpoint that consumer spending, which accounts for two-thirds of US economic activity, will continue.

Industrial production saw a 0.3% drop in December with losses in the utilities segment offsetting gains in factory production. The industry has been affected by the trade conflict between the US and China, along with unseasonably warm winter weather affecting utilities. The recent signing of a phase one agreement between the US and China may help stimulate growth in American industry.

The number of new homes which began construction hit a 13-year high last month, painting the housing market in a positive light. Low mortgage rates and continued growth in hiring contributed to the housing market gains. Residential starts rose 16.9% last month, well above estimates and reaching a 3-year high.