The growth of the US service sector accelerated in December, reflecting stronger business activity. One price index rose to the highest level since the beginning of 2023. The American Institute of Supply Management said on Tuesday that the service sector index rose 2 points to 54.1 in December. A reading above 50 indicates an expansion of industry activity. The indicator that measures the prices paid for raw materials and services rose more than 6 points to 64.4. The index of new orders rose 0.5 points to 54.2, in line with the 2024 average. Business activity indicators jumped 4.5 points to a three-month high, indicating that the economy remained on a firm footing at the end of the fourth quarter. At the same time, the ISM service sector employment index was basically flat at 51.4, indicating that the company is satisfied with the number of current employees. The recovery in service growth is in stark contrast to the manufacturing industry. The ISM manufacturing index released last week showed that industry activity in December contracted for the ninth month in a row.

The growth of the US service sector accelerated in December, reflecting stronger business activity. One price index rose to the highest level since the beginning of 2023. The American Institute of Supply Management said on Tuesday that the service sector index rose 2 points to 54.1 in December. A reading above 50 indicates an expansion of industry activity. The indicator that measures the prices paid for raw materials and services rose more than 6 points to 64.4. The index of new orders rose 0.5 points to 54.2, in line with the 2024 average. Business activity indicators jumped 4.5 points to a three-month high, indicating that the economy remained on a firm footing at the end of the fourth quarter. At the same time, the ISM service sector employment index was basically flat at 51.4, indicating that the company is satisfied with the number of current employees. The recovery in service growth is in stark contrast to the manufacturing industry. The ISM manufacturing index released last week showed that industry activity in December contracted for the ninth month in a row.