US PMI readings eased across the board in December, signaling that the “recent economic growth spurt is losing momentum”. PMI Manufacturing slipped from 52.2 to 51.8, while PMI Services fell more sharply from 54.1 to 52.9. PMI Composite dropped from 54.2 to 53.0.
S&P Global said the data remains consistent with annualized GDP growth of around 2.5% in the fourth quarter, but noted that momentum has now slowed for a second consecutive month. New sales growth weakened notably ahead of the holiday season,. The slowdown was broad-based, with services seeing near-stalling inflows of new work and manufacturing recording its first decline in factory orders in a year.
At the same time, cost pressures intensified. Firms reported a sharp pickup in inflation to the highest level since November 2022, feeding through to one of the steepest increases in selling prices in three years. Businesses also trimmed hiring and grew more cautious about the outlook, citing tariffs as a renewed source of price pressure that is now spilling beyond manufacturing into services, broadening affordability concerns.
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