US private sector businesses fell to a three-month low in December, as supply constraints continued to impact production.
Source: IHS Markit
The IHS Markit Flash US Composite PMI Output Index stood at 56.9 in December, slightly lower than the 57.2 in November. The latest reading is the lowest since September.
Supply chain disruptions and employment issues weighed on companies’ capacity to work through operations at the end of the year, with the backlogs of work growing by historic highs.
Staffing issues and challenges in retaining staff drove a marginal growth in employment, which worsened capacity pressures. This was seen specifically in the service sector, which accounted for the biggest decline.
Confidence for the coming year climbed to the highest level in over a year, on the back of hopes that client demand will grow and the Omicron variant will have less impact than earlier waves.