The ISM Services Index grew in November for the sixth consecutive month. The index registered 55.9% in November; 0.7 percentage points lower than the October reading. This reading represents a sixth straight month of growth for the services sector, which has expanded for all but two of the last 130 months.
Fourteen non-manufacturing industries reported growth. Many respondents are “mixed about business conditions and the economy. Restaurants continue to struggle with capacity constraints and logistics. Most companies are cautious as they navigate operations amid the pandemic and the aftermath of the U.S. presidential election.”
The Business Activity Index registered 58.0% in November, a 3.2 percentage point decrease from the October reading of 61.2%. This represents growth for the sixth consecutive month.
Service sector employment grew for the third consecutive month after sixth months of contraction and registered 51.5%, up 1.4 percentage points from the October reading of 50.1%. Seven industries reported increased employment.
The New Orders Index registered 57.2%, a decrease of 1.6 percentage points from the October reading of 58.8%. This is the sixth consecutive month of growth in New Orders. Comments from respondents include: “Sales for last month exceeded all-time high for the season” and “Year-end demand is high as we approach the end of our fiscal year.”
Supplier deliveries remained slow, as the index read 57%, which is 0.8 percentage points higher than the 56.2% reported in October. A reading above 50% indicates slower deliveries.
Read the ISM release.
