December PMI Composite Flash Shows Slowing Growth

December's initial PMI samples report noticeably slowing rates of growth, at a 53.6 composite flash for a roughly 1 point decline in November and the softest showing since May last year.

Services make up the bulk of the composite and the index here likewise fell a point to 53.4 to indicate the slowest rate of growth in 11 months. Output and orders both slowed for this sample.

Production did boost manufacturing which otherwise is slowing this month, down more than a point to 53.9. Growth in new orders for this sample are the weakest in just over a year. Employment is the softest since August last year.

The big drop in the price of oil is easing input costs where pressure is suddenly near a 2-year low. Overall optimism is also down, the lowest since June 2016 and reflecting concerns over the global outlook.

Today's report echoes the slowing in the manufacturing component of November industrial production which fell into the minus column. Yet however much manufacturing and also services may be slowing, a strong holiday shopping season, which is the indication from the retail sales control group, would point to a quick rebound for the new year.