Economics

Growth at U.S. Service Providers Sees Sharp Pullback From Record

  • ISM services gauge posts biggest point drop since April 2020
  • Measures of business activity and orders show slower growth

A worker uses a socket wrench to repair a motorcycle in Oakland, California.

Photographer: David Paul Morris/Bloomberg
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A measure of U.S. service providers pulled back abruptly in December after soaring to a record a month earlier, reflecting more moderate growth in business activity and orders.

The Institute for Supply Management’s gauge of services activity dropped to 62 from 69.1 a month earlier, according to data released Thursday. The December figure trailed all economists’ projections in a Bloomberg survey, which had a median estimate of 67. An index above 50 indicates expansion.