The report showed further signs of easing cost pressures in December. Business confidence increased and companies indicated that customer demand had improved.
S&P Global noted: “The strong services PMI data for December sets the US economy up for a strong start to 2025, but with growth as strong as this it is understandable that policymakers are taking a more cautious approach to lowering the interest.”
The composite PMI rose to 55.4 in December from 54.9 in November, compared to analyst forecasts of 56.6. The weaker than expected Services PMI report led to a lower than expected rating of the Composite PMI report. Nevertheless, the report showed that the US economy remained in excellent shape.
The US Dollar Index fell around the 108.20 level as traders reacted to PMI reports. It remains to be seen whether the reports will have a major impact on the forex markets today as traders are focused on Trump’s comments on his tariff policy.
Gold retreated to the $2630 level despite dollar weakness. Rising government bond yields are putting pressure on the gold markets.
SP500 tested new highs as traders focused on PMI data. Currently, SP500 is trying to settle above the 6015 level. From an overall perspective, the SP500 continues to recover from the recent pullback.