U.S. economic activity showed mixed signals in December 2025. S&P Global reported manufacturing PMI slowing to 51.8 and services PMI dropping to 52.5, both hit by declining new orders, export weakness from tariffs trade tensions, and fading business confidence, though input cost inflation eased. Meanwhile, ISM manufacturing PMI deepened contraction to 47.9, driven by production and inventory drops amid elevated prices. However, ISM services PMI surprised positively at 54.4 (the strongest since Oct 2024), boosted by holiday-seasonal gains in orders, activity, and employment, with easing price pressures. Overall, service resilience offsets manufacturing weakness amid trade uncertainty.