US Services PMI Data: December Figures and Economic Implications

December S&P Global PMIs

• 📉 The preliminary December S&P Global PMIs show a slowdown across manufacturing, services, and composite indices.
• 🏭 Manufacturing PMI came in at 51.8, lower than the previous month's 52.2 and the lowest since July.
• পরিষেবা Services PMI registered 52.9, falling short of the expected 54.0 and matching June's level.
• 📊 The composite PMI was 53.9, also below the expected 54.0 and lower than the prior month's 54.2.

Economic Indicators and Market Reaction

• ⚠️ While all three indices remain in expansion territory (above 50), they all came in sequentially lower and below expectations.
• 📈 The yield curve is holding some of its steepness following this morning's jobs report.
• 📉 Slight weakening in the labor market is pushing two-year yields down due to Federal Reserve implications.
• 🧐 There are many moving parts in the long end of the market, with the 10-year yield hovering around 4.18%.