The JPMorgan Global Services Business Activity Index shows that as 2010 ended, growth of US business activity accelerated sharply, rising to its fastest pace since August 2005.
What's more, the US growth led a global upswing. Growth of both business activity and new work in the global service sector increased, and the Index rose from 54.6 in November to 57.3 in December the fastest rate of expansion since July 2007.
In other highlights from the Index:
Business activity rose in China, India and Japan. In December, the Eurozone reported an expansion of services activity for the sixteenth consecutive month, although the rate of increase eased slightly. In Western Europe, conditions were generally less solid.
New orders rose for the sixteenth month running and at the quickest pace since June 2007.
Global service sector employment rose for the third successive month, although the pace was slight and slower than in November.
All of the nations covered by the survey saw costs rise.
According to David Hensley, Director of Global Economics Coordination at JPMorgan, these results signal optimism.
"Global services experienced a similar acceleration to its manufacturing counterpart at the end of 2010. Business activity rose at the fastest pace since July 2007, supported by a significant improvement in new business inflows. This provides important momentum and balance to the global recovery," he said. "The services job market remains muted overall, but will hopefully pick up as the upturn continues."
For more data from the JPMorgan Global Services Business Activity Index, see this press release.