December's US ISM Services PMI came in significantly stronger than expected—55.4 vs consensus estimates of 52.3. This beat suggests robust demand in the service sector, which accounts for the bulk of the US economy.

Looking at the details:

Prices Paid index sits at 64.3, down slightly from November's 65.4 but still elevated. This signals that while inflationary pressures are easing, they remain sticky in service delivery.

Employment metrics jumped to 52 from 48.9, beating forecasts of 49.0. The jobs market in services is accelerating, indicating stronger labor demand heading into Q1.

New Orders hit 57.9 against 52.9 previously and 52.6 expected—a notable surprise. This reflects solid business confidence and customer spending momentum.

Overall, the data paints a picture of a resilient US economy with improving momentum. For crypto investors, this typically means reduced recession fears and a less urgent need for aggressive Fed rate cuts, which could reshape expectations around asset allocation and market dynamics in the months ahead.