Economic Buzz: US ISM services PMI rises to 54.1 in December

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.

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.

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.

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