The United States PMI Composite Output Index, which takes both the services and the manufacturing business activity into account, stood at 56.6 in December, hitting a 33-month high and improving from 54.9 recorded in the previous month, S&P Global revealed in its preliminary report on Monday.
The Flash US Services Business Activity Index increased from 56.1 in November to 58.5 in December, while the manufacturing PMI declined from 49.7 in November to 48.3 in December, contracting further to hit a three-month low.
"Production fell at the fastest pace since May 2020, with new orders and inventories also falling at increased rates. While employment rose, the increase was only marginal and weaker than November's gain. Suppliers' delivery times meanwhile lengthened, adding support to the PMI (longer lead-times often indicate busier supply chains), though the degree of lengthening moderated slightly compared to November," Chief Business Economist at S&P Global Market Intelligence Chris Williamson stated.
