U.S. service sector activity accelerated in December, with the price index rising to its highest level in nearly two years

In December, U.S. service sector activity accelerated, with the non-manufacturing PMI rising from 52.1 in November to 54.1, exceeding market expectations. The input price index surged to a nearly two-year high, indicating rising inflation, consistent with the Federal Reserve's forecast of a smaller rate cut. Both the new orders and business activity indices increased, while the non-manufacturing price index reached its highest level since February 2023, and the employment index remained stable