Composite PMI Rises To 56.6; SP500 Tests Session Highs

On December 16, 2024, S&P Global released PMI reports for December. The reports indicated that Manufacturing PMI decreased from 49.7 in November to 48.3 in December, compared to analyst consensus of 49.8.

According to the Manufacturing PMI report, production fell at the fastest pace since May 2020, with new orders and inventories also falling at increased rates.

Services PMI increased from 56.1 in November to 58.5 in December, while analysts expected that it would drop to 55.7. The report showed that the services sector remained in great shape.

Composite PMI increased from 54.9 in November to 56.6 in December, compared to analyst forecast of 54.4.

S&P Global commented: “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.”

U.S. Dollar Index moved higher as traders reacted to the better-than-expected Composite PMI report. Currently, U.S. Dollar Index is trying to settle above the 107.10 level.

Gold pulled back from session highs as traders focused on stronger dollar. Gold did not manage to settle above the $2665 level and moved towards the $2655 level.

SP500 tested session highs near the 6075 level as traders focused on the strength of the U.S. economy.

For a look at all of today’s economic events, check out our economic calendar.