The ISM Services PMI increased 2.0 pts to 54.1 in December, above expectations of an increase to 53.3. The Business Activity index jumped 4.5 pts to 58.2, outpacing the increase in the New Orders index which increased 0.5 pts to 54.2. Employment continues to increase but at a slightly slower pace at 51.4.

The biggest move was in the Prices index which jumped 6.2 pts to 64.4. Analysts expected the Prices index to actually decline in December to 57.5, but inflationary pressures surged to the worst since February 2023 to end the year.