Manuf PMI Beats Expectations, Svcs Misses Due To Lockdowns

December flash US Composite PMI slipped from November's 68-month high, with manufacturing above expected (56.5 vs 55.8 survey) and services below (55.3 vs 55.9 survey) - though both lower than November.

• COVID lockdowns the culprit for the Services miss - per IHS Markit: "additional restrictions and softer demand impacted consumer-facing business once again."
• New orders continued to rise, though foreign orders weakened for the first time since July on COVID lockdowns in foreign markets.
• Firms also saw the biggest supply chain disruptions in the history of the data series (to 2007), with both manufacturers and service providers seeing rising input costs.
• However, "Although manufacturers raised their selling prices at the fastest rate since April 2011, seeking to pass higher costs on to customers where possible, service providers recorded a softer pace of charge inflation amid continual efforts to drive sales."
• The outlook for output over the next year remained high but slipped slightly from November on "the pandemic and surging costs', with business expectations at a 3-month low.
• Dec also saw slower employment growth on weaker backlogs.