US ISM Services PMI fell from 52.7 to 50.6 in December, below expectation of 52.7. Business activity/production rose from 55.1 to 56.6. New orders fell from 55.5 to 52.8. Employment fell sharply from 50.7 to 43.3. Prices ticked down from 58.3 to 57.3.
The past relationship between the Services PMI and the overall economy indicates that the Services PMI for December (50.6 percent) corresponds to a 0.3-percent increase in real gross domestic product (GDP) on an annualized basis.
