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US demand conditions strengthen in December, but labor shortages exacerbate cost pressures
US services providers registered another steep expansion in business activity at the end of 2021, according to the latest PMI data. The upturn eased slightly to the slowest for three months, but was supported by a sharper increase in new business. The rise in new orders was the fastest for five months, as demand conditions strengthened. Although firms sought to expand workforce numbers to tackle strong growth in backlogs of work, labor shortages and challenges retaining staff hampered progress, with employment rising only marginally. Nevertheless, hopes of further upticks in demand drove business confidence to the ... (full story)