Investing.com - Service sector activity in the U.S. fell more than expected in November, dampening optimism over the American economy, industry data showed on Tuesday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) decreased to 57.4 in November from the prior month’s reading of 60.1.
Analysts had expected the index to drop to only 59.0 last month.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting.
The Non-Manufacturing Business Activity Index decreased to 61.4 last month, 0.8 points below October’s reading of 62.2 and also below the consensus forecast of 61.5.
The New Orders Index registered 58.7 in November, 4.1 points lower than the reading of 62.8 in the previous month.
The Employment Index fell 2.2 points to 55.3 last month from October’s reading of 57.5.
The Prices Index decreased 2.0 points to 60.7 in November from the prior month’s reading of 62.7.
The ISM indicated that, despite the slowdown, it was the 95th consecutive month of expansion in economic activity in the non-manufacturing sector.
“The rate of growth has lessened in the non-manufacturing sector after two very strong months of growth,” ISM chair Anthony Nieves explained in the report.
“Comments from the survey respondents indicate that the economy and sector will continue to grow for the remainder of the year,” he added.
The U.S. dollar index, which tracks the greenback against a basket of six major rivals, was unchanged at 93.30.
Meanwhile, U.S. stock markets were trading mixed after the open. The Dow 30 slipped 17 points, or 0.07%, the S&P 500 inched up 2 points, or 0.07%, while the Nasdaq Composite gained 37 points, or 0.54%.
Add a Comment
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.