US: Service sector slowdown contrasts with stronger manufacturing performance in Dec - Markit

"December data pointed to divergent trends across the U.S. private sector economy, with a slowdown in services growth more than offsetting a robust and accelerated upturn in manufacturing output," Markit Economics reported on Thursday.

Key highlights

The seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index dropped to 53.0 in December, from 54.5 in November. 

At 52.4 in December, down from 54.5 in November, the seasonally adjusted IHS Markit Flash U.S. Services PMI Business Activity Index signalled the slowest upturn in service sector activity since September 2016. 

At 55.0, up from 53.9 in November, the seasonally adjusted IHS Markit Flash U.S. Manufacturing Purchasing Managers’ Index signalled the strongest upturn in operating conditions since January.

Job creation eased to a seven-month low in December.

Input price inflation eased to a nine-month low during December, but the overall trend masked a steep and accelerated rise in manufacturers’ cost burdens.