Service sector continuing to keep the expansion going offsetting still mfr'g weakness

The S&P Global service and manufacturing PMI for December was little changed m/o/m at 51 vs 50.7 in the two prior months, and thus just above the breakeven of 50. Manufacturing remained under 50 again at 48.2 vs 49.4 last month while services rose .5 pt to 51.3.

With respect to services, new orders improved to a 6 month high and “was linked to greater advertising spending, looser financial conditions and upselling of additional service lines to existing clients.” The ‘looser financial conditions’ I’m guessing was a boost to the financial sector in this reference. Export orders were soft as “pressure on disposable incomes in overseas markets had constrained customers’ purchasing power.” The employment component improved, “though modest overall.” On pricing, input prices were higher “for materials and fuel, alongside greater wage bills” but “service sector selling price inflation cooled to the 2^nd lowest in 10 months.”