The ISM Services Index grew in December for the seventh consecutive month. The index registered 58.2% in December; 1.3 percentage points higher than the November reading of 55.9%.
Fourteen non-manufacturing industries reported growth. Most respondents are “are cautiously optimistic about business conditions with the recent approval and impending distribution of vaccines.”
The Business Activity Index registered 59.4% in December, a 1.4 percentage point increase from the November reading of 58.0%. This represents growth for the seventh consecutive month.
Service sector employment contracted in December after three consecutive months of growth and registered 48.2%, down 3.3 percentage points from the November reading of 51.5%.
The New Orders Index registered 58.5%, an increase of 1.3 percentage points from the November reading of 57.2%. This is the seventh consecutive month of growth in New Orders. Comments from respondents include: “We are in peak season, and revenue seems pretty consistent” and “End-of-year spending.”
Supplier deliveries remained slow, as the index read 62.8%, which is 5.8 percentage points higher than the 57% reported in November. A reading above 50% indicates slower deliveries.
Read the ISM release.