Adjusted for seasonal influences, the Markit Flash U.S. Services PMI Business Activity posted 53.4 in December, down slightly from 54.6 in November but above the 50.0 no-change value for the tenth consecutive month. The average reading for the final quarter of 2016 (54.2) pointed to the steepest upturn in service sector output since Q4 2015.

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said: "Although service sector growth cooled in December, the PMI surveys indicate that the economy continued to show solid, steady growth at the end of the year. The surveys are consistent with GDP rising at an annualised rate of 2.0% in the fourth quarter, fuelled mainly by improving domestic demand".