According to Jinshi Data, Chris Williamson, chief business economist of S&P Global Market Intelligence, said that in the last month of 2024, business activity in the service industry increased significantly due to increased orders and rising optimism.
Improvements in the services sector offset the drag from manufacturing, and the economy is expected to expand strongly again in the fourth quarter following the 3.1% GDP growth in the third quarter. The strong services PMI in December is a good start for the U.S. economy in 2025.
Policymakers are taking a cautious approach to cutting interest rates, but a key focus in the coming months will be the economy's vulnerability to changes in the interest rate outlook, especially given that rates are expected to fall further.