US December ISM Non-Manufacturing PMI 54.1…"Exceeds Expectations, Reducing Rate Cut Hopes"

The United States December ISM Non-Manufacturing Purchasing Managers' Index (PMI) exceeded expectations.

On the 7th (local time), the Institute for Supply Management (ISM) announced that the U.S. non-manufacturing PMI for December last year was recorded at 54.1. This is higher than the previous month's figure of 52.1 and also above the market expectation of 53.5.

ISM conducts a monthly survey of 400 companies across 20 industries to assess the manufacturing economy and calculate the PMI index. A PMI above 50 indicates more opinions of economic expansion, while below 50 suggests more expectations of economic contraction.

Reuters analyzed, "The sharp rise in the price index, a component of the non-manufacturing PMI, suggests increased inflation," adding, "This aligns with the U.S. Federal Reserve's (Fed) prediction that there will be fewer rate cuts this year."

According to the November JOLTs released at the same time, the number of job openings and quits in the U.S. market also exceeded expectations at 8.098 million, compared to the expected 7.73 million. Concerns are rising that the robust labor market could increase inflationary pressures.

Bloomberg reported, "The U.S. job openings in November reached about 8.1 million, marking a six-month high," and added, "The labor market appears to be on a firmer footing. The recent months of entrenched inflation are lowering expectations of how much the U.S. can cut rates this year."

Meanwhile, Bitcoin prices have shown a downward trend following the indicator release. As of 12:30 AM on the 8th, Bitcoin is trading at $98,444 on the Binance USDT market, down 3.12% from the previous day.