The U.S. services sector expanded at a slower pace in December as the non-manufacturing business activity composite index was 55.3 in the month, compared to 55.9 in November, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index decreased to 49.7 from 50.3.
The employment index gained to 55.7 from 55.0.
The business activity/production index rose to 58.7 from 58.2, the new orders index was at 58.2, up from 57.5; backlog of orders fell to 50.0 from 51.5; new export orders increased to 53.5 from 49.5; inventories dipped to 53.0 from 54.5; inventory sentiment rose to 64.5 from 63.5; the supplier deliveries index dropped to 48.5 from 53.0; and imports decreased to 49.0 from 51.0.
Members' general comments on business in the month included:
- "Business continues to be strong for consulting/operational outsourcing of real estate operations." (Management of Companies & Support Services)
- "Professional and skilled craft labor is difficult to find." (Construction)
- "Continued downturn in global energy pricing has given way to reduced costs from vendors." (Mining)
- "We see continued spend demand higher than any months of this year; however, productivity reaches its peak and projects have to be carried over to 2016." (Professional, Scientific & Technical Services)
- "Holiday shopping volume is in line with forecast." (Retail Trade)
- "Currently very busy in the holiday rush season. Purchasing of supplies, postage & freight, and direct labor all more than double non-holiday periods." (Transportation & Warehousing)
- "The supply chain is faster than in previous years and equipment is more readily available." (Wholesale Trade)
- "Construction projects continue at a record pace." (Educational Services)
