The report showed that there were further signs of cost pressures moderating in December. Business confidence increased, and companies indicated that client demand had improved.
S&P Global commented: “The strong service sector PMI reading for December sets the U.S. economy up for a good start to 2025 but, with growth as strong as this, it’s understandable that policymakers are taking a more cautious approach to lowering interest rates.”
Composite PMI increased from 54.9 in November to 55.4 in December, compared to analyst forecast of 56.6. The weaker-than-expected Services PMI report led to a lower-than-expected reading of the Composite PMI report. Nevertheless, the report showed that U.S. economy remained in great shape.
