U.S. non-manufacturing sector’s growth decelerates in November - ISM

The Institute for Supply Management (ISM) reported on Wednesday its non-manufacturing index (NMI) came in at 53.9 in November, which was 0.8 percentage points lower than the October reading of 54.7 percent. This represents continued growth in the non-manufacturing sector, at a slightly slower rate.

Economists forecast the index to edge down to 54.5 last month. A reading above 50 signals expansion, while a reading below 50 indicates contraction.

Of the 18 manufacturing industries, 12 reported growth last month, the ISM said, adding that the respondents hope for a resolution on tariffs and continue to be hampered by constraints in labor resources.

According to the report, the ISM’s non-manufacturing business activity measure fell to 51.6 percent, 5.4 percentage points lower than the October reading of 57 percent. That reflected growth for the 124th consecutive month, at a slower rate in November. Meanwhile, the New orders gauge increased to 57.1 percent, up 1.5 percentage points from the reading of 55.6 percent in October. The Employment indicator surged 1.8 percentage points in November to 55.5 percent from the October reading of 53.7 percent. The Prices Index 1.9 percentage points from the October reading of 56.6 percent to 58.5 percent, indicating that prices increased in November for the 30th consecutive month.