December preliminary Markit services and manufacturing PMI
- Prior was 58.4
- Manufacturing 56.5 vs 55.8 expected
- Prior manufacturing 56.7
- Composite 55.7 vs 58.6 prior
- Full report
The services side was a slight miss while manufacturing beat expectations. It's important to remember that both of these remain at very-healthy levels.
Commenting on the PMI data, Chris Williamson,Chief Business Economist at IHS Markit, said:
"Business reported that the US economy lost growth momentum in December, though encouragingly continued to expand at a solid pace. The survey data add to the likelihood of the economy having continued to expand in the fourth quarter, building on the recovery seen in the third quarter.
"However, while November had seen business buoyed by increased activity around Thanksgiving as well as a surge in business confidence following the Presidential election and encouraging vaccine news, December has seen companies rein in their expectations, given the higher virus case numbers and tougher lockdown stances adopted in some states. Lockdowns in other countries were meanwhile reported to have hit exports.
"While vaccine developments mean some of the cloud caused by the pandemic should lift as we head through 2021, rising case numbers continue to darken the near-term outlook. In particular, resurgent virus numbers were cited as a key factor behind a pull-back in hiring, hinting that the labour market has cooled amid growing caution among employers. Other costs have meanwhile risen, linked to rising raw material prices and supply shortages caused by the pandemic, acting as a further strain on businesses."