ISM Reports Continued Services Economy Growth to End 2023

December services economy remained on a growth path to end 2023, according to the new edition of the ISM Report on Business, which was issued late last week by the Institute for Supply Management (ISM).

The Services PMI, at 50.6 (a reading of 50 or higher signals growth), fell 2.1% compare to November’s 52.7 reading, growing, at a slower rate, for the 12th consecutive month. ISM observed that the services sector and the overall economy have each been growing, at a slower rate, for the 12th consecutive month, through December. And it added that ISM the services sector has seen growth in 42 of the last 43 months, with December 2022 being the one month with a decline.

January 2023’s 55.2 Services PMI marks its highest reading over the last 12 months, and May 2023’s marks the lowest reading for the same period, with the 12-month average through December coming in at 52.8.

ISM reported that nine of the 18 services sectors it tracks saw gains in December, including: Agriculture, Forestry, Fishing & Hunting; Accommodation & Food Services; Health Care & Social Assistance; Transportation & Warehousing; Other Services; Utilities; Retail Trade; Professional, Scientific & Technical Services; and Public Administration. The nine services sectors posting decreases included: Real Estate, Rental & Leasing; Arts, Entertainment & Recreation; Wholesale Trade; Mining; Information; Educational Services; Management of Companies & Support Services; Construction; and Finance & Insurance.

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