Financial News: U.S. Services Index Rises More Than Expected In

U.S. Services Index Rises More Than Expected In December

01/07/2025 - 10:23:00 (RTTNews)

(RTTNews) - The Institute for Supply Management released a report on Tuesday showing its reading on U.S. service sector activity increased by more than expected in the month of December.

The ISM said its services PMI climbed to 54.1 in December from 52.1 in November, with a reading above 50 indicating growth. Economists had expected the index to rise to 53.3.

The bigger than expected increase by the headline index partly reflected a jump by the business activity index, which shot up to 58.2 in December from 53.7 in November.

"Some of the increased business activity seems to have been driven by preparation for demand in the new year, or risk management for impacts from ports strikes and potential tariffs," said Steve Miller, Chair of the ISM Services Business Survey Committee.

He added, "There was general optimism expressed across many industries, but tariff concerns elicited the most panelist comments."

The report also said the new orders index crept up to 54.2 in December from 53.7 in November, while the employment index edged down to 51.4 in December from 51.5 in November but continued to indicate job growth in the service sector.

The supplier deliveries index jumped to 52.5 in December from 49.5 in November, with a reading above 50 indicating slower supplier delivery performance.

On the inflation front, the prices index surged to 64.4 in December from 58.2 in November, climbing above 60 for the first time since January 2024.

The Institute for Supply Management released a separate report last Friday showing manufacturing activity in the U.S. contracted at a slower rate in the month of December.

The ISM said its manufacturing PMI inched up to 49.3 in December from 48.4 in November, although a reading below 50 still indicates contraction. Economists had expected the index to come in unchanged.

With the unexpected increase, the manufacturing PMI reached its highest level since hitting 50.3 in March 2024.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Italy's Current Account Deficit Narrows In November (11 min(s), 24 sec(s) ago)
(RTTNews) - Italy's current account surplus decreased in November from the previous year, the ...Full Story»

Eurozone Inflation Confirmed At 2.4% (01 hr(s), 09 min(s), 24 sec(s) ago)
(RTTNews) - Eurozone inflation rose to a five-month high in December, as initially estimated, fina ...Full Story»

Malaysia Economy Logs Slower Growth (02 hr(s), 01 min(s), 24 sec(s) ago)
(RTTNews) - Malaysia's economy logged a softer growth in the fourth quarter as expansions in m ...Full Story»

Slovakia HICP Inflation Eases To 3.2% (02 hr(s), 29 min(s), 24 sec(s) ago)
(RTTNews) - Slovakia's EU measure of inflation eased in December to the lowest level in three ...Full Story»

Czech Producer Price Inflation Climbs To 2.8% (02 hr(s), 58 min(s), 24 sec(s) ago)
(RTTNews) - The Czech Republic's industrial producer price inflation accelerated for the third ...Full Story»

UK Retail Sales Fall Unexpectedly (03 hr(s), 49 min(s), 24 sec(s) ago)
(RTTNews) - UK retail sales declined unexpectedly in December on falling food store sales, data fr ...Full Story»

European Economic News Preview: UK Retail Sales Data Due (04 hr(s), 35 min(s), 24 sec(s) ago)
(RTTNews) - Retail sales from the UK and final inflation from the euro area are the top economic n ...Full Story»

Singapore Non-Oil Domestic Exports Surge 9.0% (04 hr(s), 42 min(s), 24 sec(s) ago)
(RTTNews) - Singapore's non-oil domestic exports rose for the second straight month in Decembe ...Full Story»