US ISM Services PMI dropped sharply from 56.5 to 49.6 in December, well below expectation of 55.5. Business activity/production tumbled from 64.7 to 54.7. New orders dropped from 56.0 to 45.2. Employment dropped from -1.7 to 49.8. Prices dropped from 70.0 to 67.6.
ISM said: “The past relationship between the Services PMI and the overall economy indicates that the Services PMI for December (49.6 percent) corresponds to a 0.2-percent decrease in real gross domestic product (GDP) on an annualized basis.”
