Economic activity in the services sector grew in December for the seventh month in a row, according to the latest Services ISM Report on Business from the Institute for Supply Management.
“The Services PMI registered 57.2 percent, 1.3 percentage points higher than the November reading of 55.9 percent. This reading represents a seventh straight month of growth for the services sector, which has expanded for all but two of the last 131 months,” Anthony Nieves, CPSM, CPM, APP, CFPM, chair of the Institute for Supply Management services business survey committee, said. “The Supplier Deliveries Index registered 62.8 percent, up 5.8 percentage points from November’s reading of 57 percent. (Supplier Deliveries is the only ISM Report on Business index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.)
“The Prices Index figure of 64.8 percent is 1.3 percentage points lower than the November reading of 66.1 percent, indicating that prices increased in December, and at a slower rate. According to the Services PMI, 14 services industries reported growth. The composite index indicated growth for the seventh consecutive month after a two-month contraction in April and May. In December, a slight uptick in the rate of services sector growth continued. Respondents’ comments are mixed about business conditions and the economy. Various local- and state-level COVID-19 shutdowns continue to negatively impact companies and industries. Applicable human resources, production capacity and logistics have been more constrained than during the previous month. Most respondents are cautiously optimistic about business conditions with the recent approval and impending distribution of vaccines.”
Finance and insurance, construction, and mining were among the 14 services industries that reported growth in December. The four industries that reported contraction in December were arts, entertainment and recreation; accommodation and food services; other services; and real estate, rental and leasing.
What Respondents Are Saying
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