U.S. Service Sector Growth Slows Sharply in December on Cooling Demand and Employment
• ISM services activity drops sharply in December, slowing to 50.6 from 52.7 in November • Employment measure plunges to 43.3, lowest since July 2020 • New orders and export order growth also slow considerably • Services inflation remains elevated but has been cooling recently • Contributes to expectations that Fed will start cutting interest rates as soon as March