Analysis: Preliminary PMI data shows that recent U.S. economic growth momentum is weakening

According to Odaily, 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 the survey 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 slowing sharply ahead of the holiday season, economic activity may further decelerate as we enter 2026. Signs of economic weakness are also widespread, with the massive inflow of new orders in the services sector nearly coming to a halt, while factory orders have seen their first decline in nearly a year. Although manufacturers continue to report output growth, the decline in sales suggests that the current production level is unsustainable and, 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. (Golden Ten Data)