ISM: Service sector expands in November

The ISM Services Index registered 56.5%; 2.1 percentage points higher than October’s reading of 54.4%. This reading represents the 30th straight month of growth for the services sector.

13 industries reported growth. The composite index indicated growth for the 30th consecutive month after a two-month contraction in April and May 2020. Growth continues at a faster rate for the services sector, which has expanded for all but two of the last 154 months. The sector had an uptick in growth after pulling back in the previous two months. The rate of growth increased in November due to increases in business activity and employment.”

The Business Activity Index registered 64.7%; a 9 percentage points compared to the reading of 55.7 percent in October.

Employment Index registered 51.5%, up 2.4 percentage points from the October reading of 49.1%. Nine industries reported growth in employment for the month.

New Orders Index registered 56 percent, down 0.5 percentage point from the October reading of 56.5 percent. New orders grew for the 30th consecutive month after two months of contraction and a preceding period of 128 months of expansion. Comments from respondents include: “New customers added as our business continues to grow” and “Starting new fiscal year; ramping up projects.”

Supplier Deliveries Index registered 53.8 percent, down 2.4 percentage points from the 56.2 percent recorded in October. A reading above 50 percent indicates slower deliveries, while a reading below 50 percent indicates faster deliveries.

Read the ISM release.