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Global Services Expansion Cools to End 2025 as PMIs Flag Uneven Demand and Rising Costs

Final December surveys signal softer momentum, complicating central bank plans.

Overview

  • China’s RatingDog services PMI eased to 52.0, a six‑month low, as export business contracted and firms cut staff for a fifth month.
  • India’s HSBC services PMI slipped to 58.0, an 11‑month low, with a 42‑month hiring streak ending even as export orders strengthened.
  • The eurozone’s composite PMI cooled to 51.5, but Q4 was the strongest since mid‑2023 as services offset manufacturing weakness and cost pressures picked up.
  • UK services growth stayed marginal at 51.4 as input costs rose at the fastest pace in seven months and firms cut jobs again.
  • In the US, the final S&P Global services PMI slowed to 52.5 with new orders at a 20‑month low, flat employment, and faster cost and price increases linked to tariffs.