Today's Report (01/06/2022)

Economic activity in the services sector grew in December for the 19th month in a row — with the Services PMI exceeding 60% for the 10th consecutive month.

The Services PMI registered 62% in December, 7.1 percentage points lower than November's all-time high of 69.1%. The Business Activity Index was 67.6%, down 7 percentage points from the previous month's reading of 74.6%, and the New Orders Index was 61.5%, down 8.2 percentage points from the previous month's all-time high reading of 69.7%.

The Prices Index reached its third-highest level ever, 82.5%, up 0.2 percentage points from the previous month's figure of 82.3%. The Inventories Index (46.7%, down 1.5 percentage points from November's reading of 48.2%) and the Inventory Sentiment Index (registering 38.3%, up 1.9 percentage points from November) both remained in contraction or 'too low' territory in December.

Institute for Supply Management (@ism) / Twitter

US ISM Non-Manufacturing PMI

What is it?

The first read on the economy’s services sector.

What are the fundamental effects?

It provides significant information about factors that affect total output growth and inflation. A reading above 50 shows a growing non-manufacturing sector and below 50 shows contraction in the non-manufacturing sector.

How does it affect the markets?

The overall reaction is generally muted.