US Service Sector Expansion Holds Up in November Despite Virus Resurgence -- ISM
04 December 2020 - 2:42AM
Dow Jones News
By Xavier Fontdegloria
U.S. services sector expanded for the sixth straight month in
November at roughly the same speed as the previous month,
suggesting activity held up amid the rise in Covid-19 cases
nationwide.
The ISM Services Report on Business PMI for November fell to
55.9 from the October reading of 56.6, matching economists
expectations polled by The Wall Street Journal.
The reading is over the 50 point break-even point that separates
expansion over contraction in activity and signals a slight
slowdown in the growth pace registered in October.
"In November, there continued to be a slight pullback in the
rate of growth in the services sector," said Anthony Nieves, chair
of the ISM Services Business Survey Committee, noting that
respondents' comments are mixed about business conditions and the
economy.
"Most companies are cautious as they navigate operations amid
the pandemic and the aftermath of the U.S. presidential election,"
he said.
In November, the ISM services business activity index slowed to
58.0 from October's 61.2 level. The new orders index fell to 57.2
from 58.8 the prior month.
The employment index ticked up in November to 51.5 from 50.1 the
month before.
The prices index climbed to 66.1 from October reading of
63.9.
Among the 14 services industries reporting growth in November,
there are transportation and warehousing, management of companies
and support services, and health care and social assistance.
ISM services PMI also signaled that the U.S. overall economic
activity grew in November, as a reading above 48.5 over time
generally indicates an expansion of the overall economy. This is
the sixth straight month in which the PMI indicates such
expansion.
Write to Xavier Fontdegloria at xavier.fontdegloria@wsj.com
(END) Dow Jones Newswires
December 03, 2020 10:27 ET (15:27 GMT)
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