Summary

US economic output grew at its fastest pace in nearly three years at the end of 2024, with S&P Global’s composite PMI rising to 56.6 in December, driven by strong growth in the services sector.

The services PMI hit 58.5, its highest in 38 months, while manufacturing PMI fell to 48.3, reflecting ongoing declines in that sector.

GDP is projected to grow at an annualized rate of over 3% for Q4.

Optimism in business outlook remains high post-election, though concerns over tariffs and rising costs persist. Fed projections on interest rates and inflation are anticipated.