US Services Sector Records Six-Month Peak Expansion in December PMI Report
The US services sector demonstrated significant growth in December 2024. The Services PMI registered at 54.1%, marking a 2 percentage point increase from November’s 52.1%. This signifies the sixth consecutive month of expansion and the 10th instance this year that the composite index has been in expansion territory, as reported by the Institute for Supply Management (ISM).
The Business Activity Index soared to 58.2% in December, a rise of 4.5 percentage points from November’s 53.7%, indicating an accelerating growth momentum. The New Orders Index hit 54.2%, while the Employment Index remained in expansion territory at 51.4%. Steve Miller, Chair of the ISM Services Business Survey Committee, highlighted this robust finish to 2024 as a reflection of the continued resilience in the services economy.
Heading into 2025, the report signals positive momentum, with services representing the largest portion of the US economy. However, the Backlog of Orders Index contracted for the fifth consecutive month to 44.3%, suggesting some normalization in delivery schedules as supply chains stabilize.