U.S. services industry activity contracted for the first time in more than 2-1/2 years in December amid weakening demand, while the pace of increase in prices paid by businesses slowed considerably, offering more evidence that inflation was abating.
The Institute for Supply Management said on Friday its non-manufacturing PMI dropped to 49.6 last month from 56.5 in November. It was the first time since May 2020 that the services PMI fell below the 50 threshold, which indicates contraction in the sector that accounts for more than two-thirds of U.S. economic activity.
The Federal Reserve's fastest interest rate-hiking cycle since the 1980s as it battles inflation is dampening demand across the economy, though the labor market remains resilient. A measure of prices paid by services industries for inputs dropped to 67.6, the lowest since January 2021, from 70.0 in November as supply bottlenecks continued to ease.
With a measure of prices paid by manufacturers contracting for a third straight month in December, inflation pressures are likely to continue subsiding, though the labor market will probably determine the future course of monetary policy.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. manufacturing sector contracts, prices decline in December-ISMU.S. manufacturing contracted further in December, but weakening demand amid higher borrowing costs pushed a measure of prices paid by factories for inputs to the lowest level in more than 2-1/2 years, signaling that goods disinflation was underway.
Read more »
US: ISM Services PMI slumped to 49.6 in December vs. 55 expectedThe economic activity in the US service sector contracted in December with the ISM Services PMI dropping to 49.6 from 56.5 in November. This reading c
Read more »
First negative ISM reading since early pandemic is more proof U.S. economy is slowingA barometer of U.S. business conditions at service-oriented companies turned negative for the first time since the pandemic, a sign the economy is slowing.
Read more »
US: Hyundai Ioniq 5 Sales Improved In December 2022In December 2022, Hyundai sold in the US 1,720 Ioniq 5 (2.4 percent of the total volume), which is the best result since July.
Read more »
December worst for ambulance waits in West Midlands, say bossesWest Midlands Ambulance Service says handover delays beat those in July, the previous worst month.
Read more »