The rate of growth in new business eased to a 14-month low, but the pace of job creation picked up. Subsequently, panellists registered a renewed fall in backlogs as pressure on capacity decreased. Concerns surrounding the longevity of the upturn in new business led to the weakest expected rise in future output since December 2017.

The seasonally adjusted final IHS Markit U.S. Services Business Activity Index registered 54.4 in December, down from 54.7 in November, but up from the earlier reported flash figure of 53.6. The upturn in business activity was driven by a further rise in new orders and increased repeat business. Although down on growth rates seen earlier in the year, the upturn was solid overall. The final quarterly average of 2018 matched that seen in the third quarter at 54.7.