US services sector index in December falls to 7-month low

By Ovunc Kutlu

ISTANBUL (AA) - The US services sector index declined in December to its lowest level in seven months, as economic activity in the services industry decelerated, according to data released Friday.

The Institute for Supply Management's (ISM) non-manufacturing purchasing managers’ index (PMI), also known as the ISM Services PMI, fell 2.1 percentage points to 50.6% in December, from 52.7% in November, an ISM survey showed.

Analysts had expected the index, which indicates the overall economic condition of the non-manufacturing sector, to post a reading of 52.6%.

Despite the decline in the index, economic activity in the US services sector remained in positive territory since a reading above 50 indicates expansion.

While economic activity in the American service sector grew in December for the 12th consecutive month, a total of nine industries reported growth, according to the services PMI.

The index hit an all-time high of 69.1 in November 2022.