Market Analysis: Preliminary PMI data indicates that the recent momentum of US economic growth is weakening.

 Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated that the preliminary PMI data for December shows that recent economic growth is losing momentum. Although survey data indicates that the annualized GDP growth rate for the fourth quarter is about 2.5%, growth has slowed for two consecutive months. With new sales growth sharply slowing before the holiday season, economic activity may further slow entering 2026. Signs of economic weakness are also widespread, with a huge inflow of new service orders nearly stagnant, while factory orders have also declined for the first time in nearly a year. Although manufacturers continue to report output growth, the decline in sales indicates that the current production level is unsustainable unless demand recovers in the new year, production will need to be reduced. Service providers reported that sales growth in December was one of the slowest months since 2023.