US ISM Services PMI rose to 54.1 in December, beating expectations of 53.5 and marking a robust rebound from November’s 52.1. The strong performance signals continued resilience in the services sector, which has now expanded in 22 of the past 24 months. The December reading, the third-highest of 2024, suggests solid momentum heading into the new year.
Breaking down the components, business activity and production surged to 58.2, up significantly from 53.7, while new orders ticked higher from 53.7 to 54.2. Employment showed marginal softness, edging down from 51.5 to 51.4. The standout figure was in prices, which jumped sharply from 58.2 to 64.4, raising fresh concerns over inflationary pressures in the sector.
The overall services reading suggests a positive contribution to the economy, aligning with projected 1.7% annualized GDP growth rate.
