According to market news, the final value of the U.S. December S&P Global Services PMI is 56.8, down from 58.5. The final value of the U.S. December S&P Global Composite PMI is 55.4, down from 56.6.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated that in the last month of 2024, service sector business activity significantly increased due to rising orders and growing optimism about the outlook for the coming year. The improvement in services offset the ongoing drag from manufacturing on the economy, suggesting that after a 3.1% GDP growth in the third quarter, the economy will once again expand robustly in the fourth quarter. The strong services PMI in December sets a positive tone for the U.S. economy in 2025. Given the strong growth, it is understandable that policymakers are taking a more cautious approach to interest rate cuts. However, a key focus in the coming months will be the potential vulnerability of the economy to any significant changes in interest rate outlook, especially considering that rates are expected to be lowered further, with financial services activity being a crucial engine of economic growth through the end of 2024. (Jin Shi)