Final Services PMI came in at 52.8, following November's reading of 51.6.

The previous publication was 52.2. Economists had expected the reading to remain unrevised.

Above 50, the index reflects an expansion in the economic activity, below it indicates a contraction.

Employment and new orders increased the most since July, with new business from abroad posting the first advance in five months. Meanwhile, backlogs of work were broadly unchanged, as firms signaled little strain on capacity. On the price front, selling prices were raised the most since February on efforts to pass higher costs on to clients.