Markit US Service Providers Report Shows Slowing Growth

Markit's sample of US service providers reports abrupt slowing in growth so far in December, to 53.6 vs 56.2 in the final November reading and 56.3 in the mid-month November reading. December's flash is the lowest reading since the heavy weather of February.

Growth in this sample peaked in June and has been slowing the past 6 months, underscored by further moderation this month in new business. The rise in backlog work is the slowest in 5 months. Markit's sample is still hiring though job creation is the weakest in 8 months. Price pressures are muted reflecting lower fuel-related costs for inputs and lack of pricing power for prices charged.

Today's report points to tangible slowing for the bulk of the economy going into year end, and it follows weak indications so far this month from the manufacturing economy posted on Monday by the Empire State report and on Tuesday by Markit's manufacturing sample.

Recent History Of This Indicator:
The Markit PMI services index in November reported a 5th straight month of slowing growth from June's recovery peak, at a composite index of 56.2 versus 56.3 at mid-month and a final 57.1 in October. Readings on new business and output have moderated for 7 straight months. A positive was a 5-month high in hiring and a 5-month high in the business outlook.