- Prelim was 52.9
- Prior was 54.1
- Composite PMI 52.7 vs 53.0 prelim (54.1 prior
- Business activity growth slowed to an eight-month low of 52.5 in December.
- New business inflows at a 20-month low
- Employment volumes stagnated, ending a nine-month sequence of continuous growth.
- Input price inflation accelerated to a seven-month high due to tariffs.
- Service providers raised selling prices at a quicker pace to offset costs.
- Confidence in the outlook weakened amid uncertainty over tariffs and policy.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence:
"Business activity continued to expand in December, rounding off another quarter of robust growth, but the resilience of the US economy is showing signs of cracking. New business placed at services providers showed the smallest rise in some 20 months which, accompanied by the first fall in orders placed at manufacturers for a year, points to a broad-based weakening of demand growth.
"Not only has service sector business activity slowed in response to concerns over order books, with the December surveys signaling the weakest economic expansion since last April, but the number of companies cutting headcounts has exceeded those reporting higher employment for the first time since February.
"We also enter 2026 with future output expectations running much lower than seen at the start of 2025, fueling concerns that December’s slowdown and job market malaise could spill over into the new year.
"Confidence has been dampened principally by uncertainty over government policy and the broader economic outlook, with tariffs and affordability featuring as common threads throughout companies’ more cautious views on their prospects.
"These affordability worries are underscored by companies reporting an increased impact of tariffs on both input costs and selling prices in December, suggesting we could see the unwelcome combination of slower economic growth and stubbornly high inflation at the start of the new year.
"However, there is an expectation among many companies that lower interest rates and government policy will start to boost demand again as the new year proceeds."
