According to the latest ISM Services PMI Report, the services sector accelerated its expansion in December, with the index climbing to 54.4%, up from 52.6% in November. The reading marks the tenth consecutive month of expansion for the services industry and represents the strongest performance of 2025. Purchasing and supply executives surveyed indicate that economic activity remained robust heading into year-end, with readings above the 50-point threshold signaling ongoing growth.
Employment conditions within the sector also strengthened, with the employment index climbing to 52.0% from 48.9% in the prior month. This improvement suggests that services companies are gaining confidence in their near-term prospects and moving forward with hiring plans as demand remains solid. The sector's sustained expansion reflects broader economic resilience despite various macroeconomic headwinds.
The consistent performance of the services sector throughout 2025 underscores its continued importance as a driver of the nation's economic growth. With December's elevated reading, the services index capped a year of expansion that reflects healthy underlying demand for services ranging from transportation and hospitality to professional services and finance.