USA services sector slows from blistering growth pace in November

Marco Green
December 6, 2017

The Non-Manufacturing Index (NMI), which measures activity in the US service sector, dropped 2.7 points from October's reading of 60.1 to 57.4 in November, the Institute for Supply Management (ISM) said in its monthly survey report on Tuesday.

Non-manufacturing employment grew for the 45th consecutive month.

The New Orders Index fell 4.1 points to 58.7.

Economists surveyed by The Wall Street Journal had expected a reading of 59.

US non-manufacturing activity expanded at slower pace in November, as orders and employment cooled from the previous month.

The ISM said its non-manufacturing index dropped to 57.4 in November from 60.1 in October, although a reading above 50 still indicates growth in the service sector.

"The rate of growth has lessened in the non-manufacturing sector after two very strong months of growth", said Anthony Nieves, Chair of the ISM Non-Manufacturing Business Survey Committee.

The four-point decline in the group's index of supplier deliveries was the largest since the end of 2015, showing service providers are making progress after hurricanes disrupted schedules and delayed work in the previous two months.

But overall, the report suggests the economy continues to expand at a steady pace.

"Businesses are doing quite well".

"Clearly, if we do not cut taxes right away, we are going to fall right into a recession".

He argued that the tax bills which have driven stock markets to repeated records and are welcomed by many corporate leaders "do little for efficiency and lots for big company stock prices", and could accelerate inflation given the labour shortages.

Other reports by Click Lancashire

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