By Maria Martinez
The U.S. services sector lost momentum in December, after hitting a record-high growth rate in November, data from a purchasing managers survey compiled by the Institute for Supply Management showed Thursday.
The ISM Services Report on Business PMI fell to 62.0 in December from 69.1 in November, below the 66.8 consensus forecast of economists polled by The Wall Street Journal.
The index signals that the U.S. services sector registered a broad-based expansion in December as it stood well above the 50-point mark that separates growth from contraction.
Still, respondents have indicated that they continue to struggle with inflation, supply chain disruptions, capacity constraints, logistical challenges and shortages of labor and materials, said Anthony Nieves, chairman of the ISM Services Business Survey Committee.
The ISM services business activity index decreased to 67.6 in December from 74.6 in November, pointing to a deceleration of incoming work. The new orders index fell to 61.5 from an all-time high of 69.7 the previous month.
The employment index fell to 54.9 from 56.5, suggesting that firms decreased the pace of hiring over the month.
The supplier deliveries index fell 63.9 from 75.7, while the prices index rose slightly to 82.5 from 82.3.
"Supply chain challenges to procure supplies for our restaurants remains our greatest obstacle at present, along with staffing needs," said one respondent from the accommodation and food services sector.
Write to Maria Martinez at maria.martinez@wsj.com
(END) Dow Jones Newswires
01-06-22 1041ET
