Investing.com - The ISM Non-Manufacturing PMI Index registered growth in December, with the Composite Index coming in at 55.0 Tuesday, a four-month high, versus the expected 54.5 and 53.9 the previous month.
The index is released during the first week of the year and has become a key judge of the strength of the U.S. economy. The service sector has become a major driver of growth in recent months given the slowdown in the manufacturing sector amid the trade war with China.
The index is calculated such that a reading over 50 indicates expansion while a number below 50 contraction. The ISM Manufacturing PMI, released on Friday, came in at 47.2, the lowest reading since June 2009.
Another indication of the slowdown in the manufacturing sector came from the month-on-month U.S. factory orders figure for November. This showed a decline of 0.7%, compared with October figure of +0.3%.