US service industry curbs to six-month in November: ISM survey
U.S. services sector activity eased, posting its slowest pace in six months in November as businesses were held to control resurging coronavirus infections. The decline poses concerns about the economy’s recovery being stalled.
The Institute for Supply Management (ISM) reported on Thursday a 55.9 reading of its non-manufacturing index in November. The reading was the lowest since May, following a 56.6 reading in October which posted its first decline.
The services sector accounts for more than 60% of U.S. economic activity. A reading more than the 50-point mark indicates growth in the services sector. Reuters economist predicted a 56.0 reading in November.
On Tuesday, the ISM also reported that the national manufacturing activity also declined in November. This was due to many industries being forced to cease operations temporarily to sanitize facilities and having difficulties with manpower because of the coronavirus.
Further, the ISM survey found the service sector’s new orders also fell to 57.2 in November from 58.8 in the previous month.