WASHINGTON, D.C. — Activity in the US services sector picked up the pace last month, boosted by strong business activity and supplier deliveries, according to survey data published on Tuesday.
The Institute for Supply Management’s (ISM) services rose to 54.1 percent in December from 52.1 percent a month earlier indicating that activity in the sector is continuing to expand.
This was above the market consensus of 53.0, according to Briefing.com.
The rise came primarily from the “strength in the Business Activity and Supplier Deliveries indexes,” ISM survey chairman Steve Miller said in a statement.
“Many industries noted that end-of-year and seasonal factors were helping drive business activity or impact inventory management,” he continued.
Miller added that at least some of the increased business activity “seems to have been driven by preparation for demand in the new year, or risk management for impacts from port strikes and potential tariffs.”
US President-elect Donald Trump has repeatedly threatened to impose sweeping tariffs on imports coming into the United States, a move that many economists have said could impact both growth and inflation.
“There was general optimism expressed across many industries, but tariff concerns elicited the most panelist comments,” Miller said.
Nine services industries reported growth in December, including the index for entertainment and recreation. Six contracted, including forestry, fishing and hunting.
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