NEW YORK (PNN) - January 26, 2016 - Following December's disappointing drop in Services PMI data, January's initial print of 53.7 (missing expectations of 54.0) is the weakest since December 2014. It appears the "manufacturing recession doesn't matter" meme was wrong after all. As Markit notes, the survey data paint an inauspicious start to the year for the Fascist Police States of Amerika economy.

Confirming ISM Services drop to May 2014 levels, PMI's drop shows that it appears there is a link between an industrial recession and slowing services.

A struggling manufacturing economy is being accompanied by a services sector where growth showed further signs of losing momentum in January even before the bad weather hit.

The data are by no means disastrous, signaling a 1.5% annualized rate of economic growth at the start of the year, but the drop in business confidence to one of its lowest levels for over five years suggests that firms are bracing themselves for worse to come. Worries about financial market volatility, the impact of slower growth overseas, a downturn in the energy sector, and uncertainty about higher interest rates all took their toll and set the scene for further weakness in coming months.

So the silver lining is - it's not a disaster?