US Services Gauge Shrinks Unexpectedly in Worst Slide Since 2020
- ISM index tumbled almost 7 points in December to 49.6
- Business activity, orders measures drop most since April 2020
A person does steel work during an apprenticeship in Dayton, Ohio.
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A US services gauge unexpectedly shrank at the end of 2022, with steep declines in measures of business activity and orders that, if sustained, risk heightening concerns about the demand outlook.
The Institute for Supply Management’s index of services dropped to 49.6 last month, the lowest since May 2020, from 56.5 in November, data released Friday showed. The figure was below all projections in a Bloomberg survey of economists. Readings below 50 signal contraction.