U.S. Services PMI Falls in December
A reading of U.S. service-sector activity fell in December as new business growth dipped to the lowest level since October 2017, according to a report released Friday.
A final reading of the IHS Markit U.S. Services Purchasing Managers’ Index declined to a seasonally adjusted 54.4 in December from 54.7 in November. The flash reading for December was 53.6.
Readings above 50 indicate expansion, while anything below 50 indicates contraction.
The rate of new business growth dropped in December for the third consecutive month, the report said. Service providers registered the slowest pace of new orders in 14 months.
Input prices continued to rise in December, albeit at a weaker pace than in the past few months. Output charges also rose at the slowest pace since December 2017 as demand softened and input price growth moderated. Demand was also hurt by higher interest rates and economic uncertainty, the report said.
Some service providers were also less optimistic about future business conditions. Positive sentiment was at its lowest level in a year, according to IHS Markit.
Employment growth was a bright spot in the report with job creation jumping to a three-month high.
The U.S. Bureau of Labor Statistics separately on Friday reported U.S. employers added 312,000 jobs in December.
Write to Kimberly Chin at [email protected]
Corrections & Amplifications
This item was corrected at 11:26 a.m. ET to show that the IHS Markit U.S. Services PMI fell to a seasonally-adjusted 54.4 in December. An earlier version incorrectly said manufacturing PMI fell to 54.4 in December.
Source: Dow Jones