Summary The best that can be said of the 7.1 point decline in today’s ISM services report for December is that the biggest driver was shorter wait times for supplier deliveries. Prices paid climbed even higher to a scorching 82.5, just spitting-distance from an all-time high. New orders and activity softened as the Omicron surge began to bite into service sector activity. Supply Chain Pressures Eased, Price Pressures Did Not The service sector ISM dropped 7.1 points in December to 62.0, setting back the pace of expansion in the service sector to about where it was in September (chart). Unlike the ISM manufacturing report earlier this week, the underlying factors in today’s report do not soften the blow of the headline decline. READ FULL ARTICLE>>
