Source: Sharecast
The ISM services purchasing managers' index (PMI) came in at 54.5% last month, marking its 10th straight month in positive territory – marked by any figure above the neutral 50.0 level – and up from 52.6% in November.
This was the highest reading since October 2024 and comfortably ahead of consensus estimates, which had pointed to a decline to 52.3%.
The business activity index rose 1.5 points to 56.0%, while the new orders index surged 5 points to 57.9%. Meanwhile, the employment index moved into expansion territory for the first time in seven months, jumping 3.1 points to 52%.
"December’s Services PMI is a continuation of a downward trend (as noted in previous reports) of more than 10 percentage points in the 12-month average since February 2022, when it was 62.6%," said Steve Miller, the ISM's chair.
However, he added: "In an encouraging sign, the PMI® readings in November (52.6%) and December are in line with the same months in 2024 (November 52.5%; December 54%). Also, for the first time since February 2025, all four PMI subindexes are in expansion territory."
