FX.co ★ US Services Activity Falls to 8-Month Low: S&P Global

The S&P Global US Services PMI declined to 52.5 in December 2025, down from 54.1 in November, after being revised below the preliminary estimate of 52.9 and the anticipated 54, marking the slowest sector growth in eight months. New business growth contracted to its lowest in 20 months, with reports attributing the downturn to increased market demand uncertainty and reduced consumer spending, largely due to the impact of tariffs. Similarly, trade tensions caused export orders to plummet to their lowest since May. Reduced demand for capacity and persistent budget limitations led to a marginal decrease in employment levels for the first time in nine months. Meanwhile, input price inflation climbed to a seven-month high, driven by tariffs and widespread increases in supplier charges, which in turn heightened labor costs. As a result, output prices reached a four-month high. However, business optimism remained buoyant due to expectations of interest rate cuts and expansion in business initiatives.