As businesses hoped for a Trump White House that would be good for business, a big part of the U.S. economy grew at the fastest rate in more than three years.
S&P said Monday that the S&P flash U.S. services PMI jumped from 56.1 in November to a very high 58.5 in December. This is the best book in 38 months.
Any number above 50 means the economy is growing, and any number above 55 is very high.
The economy is dominated by service companies like stores, banks, and home care agencies. These companies hire most Americans.
On the other hand, the flash U.S. factory PMI fell from 49.7 in November to 48.3 in December, which was the lowest level in three months.
A much smaller part of the economy, manufacturing, was more worried about President Trump’s tariffs and the possibility that important raw materials that need to be shipped would cost more.
As the month starts, the polls are the first signs that show how the U.S. economy is doing.
In 2024, the economy has grown surprisingly quickly. Trump plans to speed things up even more by cutting taxes and getting rid of a lot of rules.
Still, Trump’s policies on tariffs and immigration, which could be harsh, have made people worry that they will slow down growth.
Because inflation has gone up a little, the Federal Reserve seems ready to stop lowering interest rates after this week.
In 2025, the U.S. economy may have to fight crosscurrent because of this.
