US Services Sector Sees Accelerated Growth as December PMI Climbs to 54.1%
The Institute for Supply Management (ISM) Services Purchasing Managers’ Index witnessed a significant jump to 54.1% in December 2024, a rise from 52.1% in November. This marks the sixth consecutive month of expansion in the services sector, indicating the continued strength in the US economy’s largest sector.
The Business Activity Index registered a robust 58.2%, a climb of 4.5 percentage points from November’s 53.7%. This represents the third-highest reading of the year. “The Services PMI has expanded in 22 of the last 24 months dating back to January 2023,” noted Steve Miller, Chair of the ISM Services Business Survey Committee.
The strong performance was driven by end-of-year seasonal factors and preparation for demand in the new year. Some businesses also took precautionary measures due to potential port strikes and tariff concerns.
- Nine industries reported growth in December, though this was five fewer than the previous month.
- The reading suggests the overall economy is expanding, with the December figure corresponding to a 1.7 percentage point increase in real GDP on an annualized basis.
Source: PR Newswire