The U.S. services sector activity unexpectedly picked up in December, suggesting the economy ended 2025 on a solid footing. The Institute for Supply Management said on Wednesday its nonmanufacturing purchasing managers index increased to 54.4 last month from 52.6 in November. Economists polled by Reuters had forecast the services PMI dipping to 52.3. The services sector accounts for more than two-thirds of U.S. economic activity. The PMI suggested strong momentum in the economy heading into the new year, with even a measure of services employment rebounding to 52.0 after contracting for six straight months. The economy grew at its fastest pace in two years in the third quarter, fueled by robust consumer spending.