The U.S. economy will close out 2024 in good shape, according to data shared by business and finance analytics company S&P Global. According to their recent report, the U.S. economic output is currently rising at a steepest rate in 33 months.
The S&P Global Flash US PMI Composite Output Index, which measures the activity in services and manufacturing sectors, jumped to 56.6 in December compared to 54.9 in the month prior. This marked the fastest expansion of business activity in the United States since March 2022, when the economy was recovering from COVID lockdowns. It also surpassed the 55.1 expected by economists.
The companies are currently expecting further growth in 2025. This has been visible in the projections for the next year as well as in increased hiring activity in recent months.
However, it is important to note that the rise in economic output was largely driven by the services sector. The Flash U.S. Services PMI came at 58.5 compared to November’s 56.1 and is now at its 38-month high.
The Flash U.S. Manufacturing PMI, on the other hand, has hit a three-month low, coming at 48.3 compared to November’s 49.7.
“Business is booming in the U.S. services economy, where output is growing at the sharpest rate since the reopening of the economy from COVID lockdowns in 2021. The service sector expansion is helping drive overall growth in the economy to its fastest for nearly three years, consistent with GDP rising at an annualized rate of just over 3% in December,” Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said in a statement. “It’s a different picture in manufacturing, however, where output is falling sharply and at an increased rate, in part due to weak export demand,” he added.