Robust Expansion in US Services Sector: December PMI Report Reveals
The U.S. services sector showcased a robust expansion in December, with the Services PMI hitting 54.1%. This figure is a significant 2 percentage points higher than November’s 52.1%, as per the data from the Institute for Supply Management (ISM). This marks the sixth consecutive month of growth and the 10th instance this year that the composite index has landed in the expansion zone.
The Business Activity Index witnessed a surge, reaching 58.2% in December, a leap of 4.5 percentage points from November. This indicates a strong momentum across service industries. Steve Miller, Chair of the ISM Services Business Survey Committee, pointed out that the December reading “corresponds to a 1.7-percentage point increase in real gross domestic product (GDP) on an annualized basis.” The employment index also stayed in the expansion zone at 51.4%, hinting at continued job growth in the services sector.
This encouraging data strengthens the belief that the overall economy is on a continual expansion path, fostering optimism for the economic performance of 2025.
Source: PR Newswire