ISM(R) Services Index Decreased to 62.0% in December

by Calculated Risk on 1/06/2022 10:03:00 AM

(Posted with permission). The December ISM(R) Services index was at 62.0%, down from 69.1% last month. The employment index decreased to 54.9%, from 56.5%. Note: Above 50 indicates expansion, below 50 in contraction.

From the Institute for Supply Management: Services PMI(R) at 62% December 2021 Services ISM(R) Report On Business(R)

Economic activity in the services sector grew in December for the 19th month in a row — with the Services PMI(R) exceeding 60 percent for the 10th consecutive month — say the nation’s purchasing and supply executives in the latest Services ISM(R) Report On Business(R).

The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management(R) (ISM(R)) Services Business Survey Committee: “In December, the Services PMI(R) registered 62 percent, 7.1 percentage points below November’s all-time high reading of 69.1 percent. The Business Activity Index registered 67.6 percent, a decrease of 7 percentage points compared to the reading of 74.6 percent in November, and the New Orders Index registered 61.5 percent, 8.2 percentage points lower than the all-time high reading of 69.7 percent reported in November.
emphasis added

This was below the consensus forecast, and the employment index decreased to 54.9%, from 56.5% the previous month.