Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

U.S. services sector activity unexpectedly accelerates in November - ISM

Economic Indicators Dec 05, 2022 10:04AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Scott Kanowsky 

Investing.com -- Growth in the U.S. services industry unexpectedly accelerated in November, overcoming a dip in new orders and pressure from elevated prices, according to new data from the Institute for Supply Management on Monday.

The ISM said its non-manufacturing purchasing managers' index increased to 56.5 during the month, up from 54.4 in October.

Economists had predicted that the reading would fall to 53.3. A mark above 50 generally indicates expansion.

The uptick in activity brings an end to a two-month string of slowing growth in the services sector, which makes up more than two-thirds of the U.S. economy.

ISM's reading of new orders received by these businesses dipped to 56.0 from 56.5 in the previous month but remains well within expansion territory, with companies saying that they are adding fresh customers and ramping up projects. New export orders contracted for a second consecutive month but were offset by a jump in imports.

The survey's measure of services industry supplier deliveries moved down to 53.8 in November. A level above 50 points to a slowing in deliveries, which the ISM says is typical as customer demand rises. The backlog of orders edged slightly lower as well.

Meanwhile, ISM's gauge of prices paid in the services sector retreated marginally to 70 from 70.7 in October but is still at relatively high levels.

The figures come after ISM's survey of manufacturing sector activity in November dropped into contraction territory for the first time since the early days of the COVID-19 pandemic. Prices paid by these firms for raw materials also decreased for the second time in nearly two and a half years, in a continued sign that inflation may be shifting from goods into services.

The Federal Reserve has been raising interest rates aggressively in a bid to temper demand and quell a recent surge in price growth. But the U.S. central bank's chair Jerome Powell has said that "the time for moderating the pace of rate increases may come as soon as the December meeting," referring to an upcoming gathering of policymakers on December 13 - 14.

U.S. services sector activity unexpectedly accelerates in November - ISM
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
Jim Hernandez
Jim Hernandez Dec 05, 2022 11:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
reality will hit Feb - March 2023. When people and the gov refuse to curb spending, this can only end 1 way and it's not going to be smooth
Jim Hernandez
Jim Hernandez Dec 05, 2022 11:03AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol soft landing on the moon...maybe. ohhhhh some people gonna have to learn to save the hard way.
Andy Prud
Andy Prud Dec 05, 2022 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market Watch reported 49.0 ISM so🤔?
Laynnell Suggs
Laynnell Suggs Dec 05, 2022 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Possibly ism for employment data for October 🤷🏾‍♀️
First Last
First Last Dec 05, 2022 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't see any ISM # reported today for 49
First Last
First Last Dec 05, 2022 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ISM manufacturing PMI from 4 days ago is 49, but this article is about NON-manufacturing.
Rob Wade
Rob Wade Dec 05, 2022 10:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
lol
Brad Albright
Brad Albright Dec 05, 2022 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More data in line with a soft landing.
Show previous replies (6)
First Last
First Last Dec 05, 2022 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hd tv  "While the S&P Global PMI for the service sector only includes data provided by companies operating in the US services economy, encompassing a variety of consumer, business and financial services which are provided by the private sector (or otherwise charged for), the ISM services PMI in fact covers any activity other than manufacturing."  --  So the ISM covers more.
hd tv
hd tv Dec 05, 2022 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
yes, thanks, that has helped. Still the difference at the moment is too large to know which one is closer to the current conditions. especially reading through it, he states s&p uses bissness activity for the headline figure, 46 vs 64.7 today, which I find it hard to believe farming,utilities,mining, Construction and retail making up that difference especially as retail and construction have been weak recently.
Brad Albright
Brad Albright Dec 05, 2022 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hd tv  Retail sales have been consistently rising for months: https://www.investing.com/economic-calendar/
First Last
First Last Dec 05, 2022 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Brad Albright   And the US has been increasing farm income and crude/gas production, which is categorized as mining.  Of course, the same Russian aggression that increased world inflation is what's been increasing world demand for these US commodities.
hd tv
hd tv Dec 05, 2022 10:12AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
where retail sales are up in nominal terms, they have been trending down snice last year using both inflation adjusted and volume terms and companies earnings have been struggling in the sector recently. been honest, I don't know the farming figures, but as it accounts for a very small portion of economic output, it shouldn't have a massive effect on the report, oil production is still below pre covid high and last month only saw a small increase and falling average prices so can't see a reason for massive m/m gain in confidence in the sector, gas production is around record high so I agree I would expect confidence in the sector
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

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.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email