US final S&P Global Services PMI 52.5 vs 52.9 prelim

• Prelim was 52.9
• Prior was 54.1

Chris Williamson, Chief Business Economist at S&P Global
Market Intelligence:

“Business activity continued to expand in December, rounding
off another quarter of robust growth, but the resilience of
the US economy is showing signs of cracking. New business
placed at services providers showed the smallest rise in some
20 months which, accompanied by the first fall in orders
placed at manufacturers for a year, points to a broad-based
weakening of demand growth.

“Not only has service sector business activity slowed in
response to concerns over order books, with the December
surveys signaling the weakest economic expansion since last
April, but the number of companies cutting headcounts has
exceeded those reporting higher employment for the first
time since February.

“We also enter 2026 with future output expectations running
much lower than seen at the start of 2025, fueling concerns
that December’s slowdown and job market malaise could spill
over into the new year.

“Confidence has been dampened principally by uncertainty
over government policy and the broader economic outlook,
with tariffs and affordability featuring as common threads
throughout companies’ more cautious views on their
prospects.

“These affordability worries are underscored by companies
reporting an increased impact of tariffs on both input costs
and selling prices in December, suggesting we could see the
unwelcome combination of slower economic growth and
stubbornly high inflation at the start of the new year.

“However, there is an expectation among many companies
that lower interest rates and government policy will start to
boost demand again as the new year proceeds.”

This article was written by Adam Button at investinglive.com.