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Prices & Quotes
ISM non-manufacturing index slips in November
By Michele Maatouk
Date: Wednesday 04 Dec 2019
LONDON (ShareCast) - (Sharecast News) - Activity in the US services sector deteriorated more than expected in November, according to data released on Wednesday.
The Institute for Supply Management's services index fell to 53.9 from 54.7 in October, missing expectations for a reading of 54.5.
The non-manufacturing business activity index fell to 51.6 in November from 57 the month before, reflecting growth for the 124th consecutive month.
The new orders index printed at 57.1 from 55.6 in October and the employment index rose to 55.5 from 53.7. The prices index ticked up to 58.5 from 56.6.
Andrew Hunter, senior US economist at Capital Economics, said the small decline in the ISM non-manufacturing index suggests that the risks to the near-term outlook are still tilted to the downside, with a weighted average of the ISM manufacturing and non-manufacturing indices consistent with GDP growth slowing to a standstill.
"But the latest hard data suggest that growth will slow only gradually to around 1.5% annualised in the fourth quarter, while the more reliable Markit PMIs have started to rebound in recent months.
"Overall, the latest batch of ISM surveys are clearly a disappointment, but on their own they won't be enough to trigger a 'material reassessment' of the Fed's outlook for the economy. The upshot is that we still think further policy loosening is unlikely."