Purchasing Managers’ Index – Services, December 2014
Services PMI dropped to 55.4 in December – stable growth with signs of rising price pressure
- The purchasing managers’ index for the service sector (Services PMI) fell from 56.8 in November to 55.4 in December. This decrease was due to a less steep increase in new orders; the other sub-indices increased during the month. Taken together, 2014 was a stable year for the service sector. The three-month moving average shows that the Services PMI often hovered around 56.
- The sub-index for new orders fell in December to 53.3, which was the second lowest level in 2014. Despite the decrease, this sub-index and the index for order backlogs, which fell from 59.9 to 53.2 in December, have been in the growth zone for 18 months. In line with rising orders, business activity continued to increase, and the sub-index landed at 57.3.
- The employment sub-index rose from 54.6 in November to 56.8 in December. Employment has likely benefited from expansive production, increased orders and an optimistic outlook among service companies. The index for planned business activity dropped by four points, although the figure remained high at 66.2.
- For the second consecutive month, the index for prices of suppliers’ intermediate goods rose to the highest level since 2011. An index score of 58.3 and a short-term upward trend since May indicate weak upward price pressure. This conclusion is supported by the fact that the index has been in the growth zone for eleven of the past twelve months.
PMI - Services, December 2014