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Following US Manufacturing PMI's disappointing decline in December, US Services PMI was expected to rise in December and it did, with the final print of 51.4 (up from the flash 51.3 and 50.8 in November).

Source: Bloomberg

The 'soft' services sector survey is the strongest since July 2023 – as 'hard' data plumbs 2023 lows.

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

However, at the composite level, on the price front, total input costs rose at a sharper rate in December as operating expenses at manufacturers and service providers increased at faster paces.

So – take your pick – cut rates because manufacturing recession or cut rates to keep the Services sector soaring? Because it's an election year and we can't be hiking right?