The U.S. services sector was steady in December as the non-manufacturing business activity composite index was 57.2 in the month, compared to 57.2 in November, on a seasonally adjusted basis, the Institute for Supply Management reported Thursday.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
Economists polled by Thomson Reuters had expected a 53.5 level.
The prices paid index climbed to 57.0 from 56.3.
The employment index dropped to 53.8 from 58.2.
The business activity/production index dipped to 61.4 from 61.7, the new orders index was at 61.6, up from 57.0; backlog of orders fell to 48.0 from 51.0; new export orders declined to 53.0 from 57.0; inventories rose to 52.0 from 51.5; inventory sentiment gained to 61.5 from 60.5; the supplier deliveries index remained at 52.0; and imports decreased to 50.0 from 54.0.
Members' general comments on business in the month included:
"New business slowed a little bit, but we are still growing. The key headwinds are holiday season and capex [capital expenditures] tightening due to end of year budgets." (Construction)
"Steady with optimism." (Finance & Insurance)
"Business is the same and at the same volumes as last month." (Health Care & Social Assistance)
"Very busy end to the 4th Qtr due to customers' year-end spending boost." (Mining)
"Activity seems to be increasing as more potential client inquiries have been coming in." (Professional, Scientific & Technical Services)
"Labor, especially construction labor and construction subcontractors, continue to be in short supply." (Public Administration)
"Sales increasing due to [the] holidays." (Retail Trade)
"Distribution of finished goods ahead of last year and forecasts in all channels. E-commerce [has the] strongest growth." (Transportation & Warehousing)
