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Against a backdrop of strengthening 'hard' data, manufacturing surveys signaled a strong rebound in January.

• S&P Global's Manufacturing PMI spiked from 47.9 in Dec to 50.3 prelim to 50.7 final in January.

• ISM's Manufacturing PMI jumped from 47.1 (revised lower) in Dec to 49.1 in January, well above the 47.2 expected.

Source: Bloomberg

The jump in the S&P Global print, to its highest since September 2022, is the biggest since at least 2020.

While the PMI data was still below 50, it was above all but one estimates, and the 5.5-point increase in the orders index marked the largest monthly advance in more than three years.

The PMI's employment index deteriorated further (below 50 for the fourth month in a row).

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

However, amid all the exuberance, there is worrying trend:

It appears Powell was right to want "more confidence".