US Composite PMI Hits 33-Month High

The United States PMI Composite Output Index, a comprehensive measure of both services and manufacturing business activity, reached 56.6 in December, marking a 33-month high and an improvement from the 54.9 recorded in November, according to S&P Global's preliminary report released on Monday.

The Flash US Services Business Activity Index saw a notable increase, rising from 56.1 in November to 58.5 in December. However, the manufacturing PMI experienced a decline, falling from 49.7 in November to 48.3 in December, reaching a three-month low.

Key Highlights:

Production fell at the fastest pace since May 2020, with new orders and inventories also declining at increased rates. Employment saw a marginal rise, but weaker than November's gain. Suppliers' delivery times lengthened, indicating potentially busier supply chains, though the degree of lengthening moderated slightly compared to November. "While employment rose, the increase was only marginal and weaker than November's gain," noted Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.