The final value of the U.S. December S&P Global Services PMI was 56.8, down from the previous value of 58.5

According to market reports, the final value of the S&P Global Services PMI in the United States in December was 56.8, down from the previous value of 58.5. The final value of the S&P Global Composite PMI in the United States in December was 55.4, down from the previous value of 56.6. Chris Williamson, chief business economist at S&P Global Market Intelligence, said that in the final month of 2024, a significant increase in service sector business activity was seen due to rising orders and increased optimism about the outlook for the coming year. The improvement in the service sector offset the continued drag on the economy from the manufacturing sector, meaning that following the 3.1% GDP growth in the third quarter, the economy is set for another strong expansion in the fourth quarter. The robust service sector PMI in December bodes well for the U.S. economy in 2025. Given the strength of the growth, it is understandable that policymakers are taking a more cautious approach to interest rate cuts. However, a key focus over the coming months will be the potential vulnerability of the economy to any significant changes in the interest rate outlook, especially considering the expected further lowering of rates, as financial services activity has been a key engine of economic growth throughout the end of 2024. (FXStreet)