US Services Activity Expands at Fastest Pace in Over a Year (2)

US services activity expanded in December at the fastest pace in more than a year, fueled by solid demand growth and a pickup in hiring.

The Institute for Supply Management’s index of services rose 1.8 points to 54.4, the highest since October 2024, the group said Wednesday. Readings above 50 indicate expansion in the largest part of the economy. The December figure exceeded all projections in a Bloomberg survey of economists.

New orders expanded by the most since September 2024 and a measure of business activity, which parallels the ISM’s factory output gauge, climbed to a one-year high. Export bookings ...