US services ISM edges lower in December

Levels of activity in US services cooled slightly in December according to the most widely-followed gauge for that sector.

The Institute for Supply Management’s purchasing managers’ index fell by 0.6 points to 55.3, coming in below the median forecast from economists for a reading of 56.0.

Given recent weak readings on the state of US manufacturing – which has been weighed down by the lagged effects of dollar strength and the drop in oil prices – the services sector was seen by analysts as increasingly critical for the economic outlook.