ISM Non-Manufacturing Composite rose to 55.0 in December, up from 53.9 and beat expectation of 54.5. Looking at some details, Business Activity/Production rose 5.6 to 57.2. New Orders dropped -2.2 to 54.9. Employment dropped -0.3 to 55.2.
ISM said: “The respondents are positive about the potential resolution on tariffs. Capacity constraints have eased a bit; however, respondents continue to have difficulty with labor resources.”
Also: “The past relationship between the NMI® and the overall economy indicates that the NMI® for December (55 percent) corresponds to a 2.2-percent increase in real gross domestic product (GDP) on an annualized basis.”
