Market analysis: PMI preliminary data shows that the recent economic growth momentum in the United States is weakening

Chris Williamson, chief business economist at S & P Global Market Intelligence, said the preliminary PMI data for December showed that recent economic growth was running out of steam. Growth has now slowed for two straight months, despite survey data showing that GDP grew at an annualised rate of about 2.5 per cent in the fourth quarter. With new sales growth slowing sharply ahead of the holiday season, activity is likely to slow further into 2026. Signs of economic weakness are also widespread, with huge inflows of new orders into the services sector all but stagnating, while factory orders also fell for the first time in nearly a year. While manufacturers continue to report output growth, falling sales suggest that current levels of production are unsustainable and will need to be reduced unless demand recovers in the new year. The service provider reported that sales growth in December was one of the slowest months since 2023.