ISM services PMI edges higher in December, prices gain
By Alexander Bueso
Date: Tuesday 07 Jan 2025
(Sharecast News) - Services sector activity in the US picked up speed last month, as did prices in that part of the economy, a closely followed survey showed.
The Institute for Supply Management's services sector Purchasing Managers' Index rose from a reading of 52.1 for November to 54.1 in December.
Economists had forecast a reading of 53.3.
A key sub-index of new orders improved from 53.7 to 54.2, whilst that tracking the prices paid by companies jumped from 58.2 to 64.4.
The employment sub-index meanwhile ticked lower from 51.5 to 51.4.
Purchasing managers from several sectors cited by ISM noted concern or uncertainty around the tariffs that the new Trump administration might put in place.
Those sectors were Accommodation and Food services, Construction, Information, and Transportation.
Thomas Ryan at Capital Economics described the breakdown of the PMI components as "mostly encouraging", saying that together with a small rise in the factory PMI Capital Economics's weighted ISM index pointed to "mildly positive" GDP growth.
And as the ISM surveys had understated growth over the preceding two years, that supported their view for a slowdown in economic growth to a 2% annualised pace over the first six months of the year.
-- More to follow --
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