Preliminary PMI data for December indicates a slowdown in US economic growth, according to Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. The data suggests that fourth-quarter GDP growth is approximately 2.5% at an annualized rate, but momentum has weakened for two consecutive months.
New sales growth has sharply decelerated ahead of the holiday season, signaling potential further economic slowdown into 2026. The service sector's influx of new orders has nearly stalled, and factory orders have declined for the first time in nearly a year. Despite ongoing output growth, manufacturers face unsustainable production levels due to declining sales, necessitating potential output reductions unless demand rebounds in the new year. Service providers also reported one of the slowest sales growth rates since 2023.
US Economic Growth Slows as PMI Data Reveals Weakening Momentum
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