According to market news, the final value of the S&P Global Services PMI in December was 56.8, and the previous value was 58.5. The final value of the S&P Global Composite PMI in December was 55.4, and the previous value was 56.6.
Chris Williamson, chief business economist of S&P Global Market Intelligence, said that in the last month of 2024, business activities in the service industry increased significantly due to increased orders and rising optimism about the outlook for the coming year. The improved performance of the service industry offset the continued drag on the economy from the manufacturing industry, which means that the economy will expand strongly again in the fourth quarter after the 3.1% GDP growth in the third quarter. The strong service industry PMI in December made a good start for the US economy in 2025. Given such strong growth, it is understandable that policymakers are taking a more cautious approach to interest rate cuts. However, a key focus in the coming months will be the potential vulnerability of the economy to any major changes in the interest rate outlook, especially given that interest rates are expected to be further reduced and financial services activities have been an important engine of economic growth in late 2024. (Jinshi)