Purchasing Manager's Index - Services December 2015
Services PMI rose to 58.0 in December: Finish to 2015 paves the way for a strong start to 2016
- The purchasing managers’ index for the service sector (Services PMI) rose to 58.0 from 56.3 in December. The increase was broad, and in retrospect 2015 was a stable year for the service sector with a three-month moving average of around 56. A strong finish to the year paves the way for a good start to 2016.
- The sub-index for new orders was the only negative contributor to the Services PMI after falling by 1.6 points to 58.0 in December. This has to be weighed against the fact that new orders have risen for 30 months. At the same time the index for order backlogs jumped from 51.3 to 55.8, the second highest reading of the year.
- The sub-index for business volumes rebounded above the 60 mark after dipping in November. With a gain of 1.5 points, the sub-index reached 61.3. Expectations about future production rose as well, and the index reading for December was 70.7, the highest since January 2011. Hiring needs also grew. The sub-index for employment, which was 56.7, provided the biggest positive contribution to the Services PMI.
- The index for suppliers’ intermediate goods rose to 54.4 in December from 52.7 in the previous month. Though intermediate goods prices have risen for 17 months, the rate of increase has slowed since the second quarter. The average for October to December was 53.1. For second and third quarters the averages were 57.7 and 56.1.
PMI Services December 2015