Service sector activity in the U.S. saw continued growth in the month of December, the Institute for Supply Management revealed in a report on Thursday.
The ISM said its non-manufacturing index came in at 57.2 in December, unchanged from the November figure. A reading above 50 indicates growth in the service sector.
Economists had expected the non-manufacturing index to show a modest decrease, with the consensus estimate calling for a reading of 56.8.
"The non-manufacturing sector closed out the year strong maintaining its rate of growth month-over-month," said Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee. "Respondents' comments are mostly positive about business conditions and the overall economy."
While the report said the new orders index climbed to 61.6 in December from 57.0 in November, the business activity index edged down to 61.4 from 61.7.
The employment index also slid to 53.8 in December from 58.2 in November, indicating a slowdown in the pace of job growth in the service sector.
On the inflation front, the prices index inched up to 57.0 in December from 56.3 in November, suggesting a slightly faster rate of price growth.
The ISM released a separate report on Tuesday showing that growth in manufacturing activity accelerated by more than anticipated in December.
The purchasing managers index climbed to 54.7 in December from 53.2 in November, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to inch up to 53.8.
The index indicated growth in manufacturing for the fourth consecutive month and reached a new high reading for the year.
by RTT Staff Writer
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