The flash S&P Global manufacturing and services PMI data for December is out and shows weakness:
- Prior month manufacturing 52.2
- Manufacturing flash PMI 51.8 versus 52.0 estimate
- Services PMI flash 52.9 versus 54.0 estimate. Prior month 54.1..
- Composite index 53.0 versus 54.2 last month
Below is a chart of the composite PMI compared to GDP growth.
The data is all in expansion mode above the 50.0 level, but all are less than expected as well.
Chris Williamson, Chief Business Economist at S&P
Global Market Intelligence:
- The flash PMI data for December suggest that the recent
economic growth spurt is losing momentum. Although the
survey data point to annualized GDP expansion of about
2.5% over the fourth quarter, growth has now slowed for
two months. With new sales growth waning especially
sharply in the lead up to the holiday season, economic
activity may soften further as we head into 2026. - The signs of weakness are also broad-based, with a nearstalling of inflows of work into the vast services economy
accompanied by the first fall in factory orders for a year.
While manufacturers continue to report higher output,
lower sales point to unsustainable production levels which
will need to be lowered unless demand revives in the
new year. Service providers reported one of the slowest
months for sales growth since 2023. - Firms have also lost some confidence in the outlook and
have restricted their hiring in December in accordance
with the more challenging business environment. A key
concern is rising costs, with inflation jumping sharply to
its highest since November 2022, which fed through to
one of the steepest increases in selling charges for the
past three yearsS&P Global flash manufacturing PMI December 51.8 versus 52.0 estimate
