US Services Activity Expands at Fastest Pace in Nine Months
US services activity expanded at a slightly faster pace in November, while a measure of prices paid dropped to a seven-month low.
The Institute for Supply Management’s index of services edged up 0.2 point to a nine-month high of 52.6, the group said Wednesday. Readings above 50 indicate expansion in the largest part of the economy.
The ISM's index of prices paid for services and materials showed the slowest growth in seven months. While still historically high, the figure indicates some easing of inflationary pressures.
The overall services gauge was underpinned by a lengthening of supplier delivery times as well as a further improvement in business activity.
The supplier deliveries index rose 3.3 points to the highest in more than a year. The increase may reflect the tariff-related challenges that companies are facing as they attempt to source products in a complicated trade environment.
The business activity index, which parallels the ISM's factory output gauge, ticked up to a three-month high of 54.5. At the same time, orders growth slowed from a one-year high.
The services gauge stands at odds with a struggling manufacturing sector. Separate figures from the ISM on Monday showed November factory activity shrank for the ninth month in a row.
Meanwhile, service-industry employment showed further signs of stabilizing. The group's index climbed to a six-month high of 48.9, indicating employment shrank at a slower pace.
Inventories expanded at the fastest pace in seven months, according to an ISM gauge. Even so, a measure of inventory sentiment eased, suggesting fewer service providers see their stockpiles as being too high.
Source : Bloomberg.com
