The latest
report by S&P Global revealed the seasonally adjusted final S&P Global
U.S. Services Business Activity Index (PMI) came in at 51.4 in December, up
from 50.8 in November and marginally above the earlier released “flash”
estimate of 51.3. The December reading indicated that the activity in the U.S.
services sector expanded at the quickest pace since July.
Economists had predicted
the indicator to be unrevised at 51.3.
According
to the report, an acceleration of growth at the end of 2023 stemmed from
stronger demand conditions as new orders increased at the sharpest rate since June.
In addition, employment rose at a steeper pace and business confidence ticked higher.
On the price front, cost inflation increased at the most marked pace for three
months, while the pace of charge inflation eased to one of the slowest in over
three years.