December PMI Composite final print inches marginally lower M/M, comes in above consensus

December U.S. PMI Composite Index (Final):  56.9 vs. 56.5 consensus and 57.2 prior.

U.S. private sector businesses indicated a strong upturn in output at 2021 end, despite the rate of expansion easing to the slowest for three months.

Supporting the upturn in activity was a quicker increase in December new orders, pace of expansion was the sharpest for five months, and largely driven by a faster rise in service sector new business.

Service Index: 57.5 vs. 58.5 consensus, 58 prior.

Business activity upturn remained sharp despite slowing to a 3-month low as demand conditions strengthened at the end of the year.

The pace of new business growth accelerated to the fastest for five months; Foreign client demand also rose.

Employment growth slowed to the softest for three months in December, as pressure on capacity remained substantial.

Backlogs of work rose at the third-fastest pace on record.

Output expectations for the year ahead were the greatest for four months in December, amid hopes of smoother supply flows in 2022.