The S&P Global US Services PMI fell to 52.5 in December (from 54.1 in November), signaling slower services activity growth amid cooling demand late in the year.

• Business activity remained in expansion for a 35th consecutive month, but December marked the slowest growth rate in eight months, reflecting softer momentum as 2025 closed.

• New business rose only marginally, the weakest increase in 20 months, as firms cited squeezed client budgets, demand uncertainty, and tariff-related instability, particularly for foreign orders.

• New export business declined for the second time in three months, with the pace of contraction the steepest since May, highlighting external demand softness.

• Employment edged down slightly, ending a nine-month run of job growth, as cost pressures, budget constraints, and slower demand limited hiring despite modest increases in backlogs.

• Input cost inflation accelerated to a seven-month high, driven by tariffs, higher supplier charges, and labor-related expenses, remaining well above the historical average.

• Selling prices rose at a faster pace as firms attempted to pass through higher costs, marking the strongest increase since August and underscoring margin pressure.

• The US Composite PMI eased to 52.7 (Nov: 54.2), consistent with slower growth across both services and manufacturing while remaining above the 50 threshold.