BOOM: ISM Services Unexpectedly Rises To 54.7

Business Insider

The ISM Non-Manufacturing Survey for the month of November is out. The index rose to 54.7 from October's reading of 54.2.

The consensus estimate was that the index would fall to 53.5.

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The rise in the headline number was led by imports (up 6.0 percent) and business activity/production (up 5.8 percent).

However, prices tumbled 8.6 percent and employment fell 4.6 percent.

Below is a full breakdown of the sub-components of the index (any figure above 50 indicates expansion):

Here is what respondents to the ISM survey from various service industries are saying about the economy:

  • "Cautiously optimistic is the best way to describe customer sentiment. Revenue continues to remain well below last year, but seems to have finally reached a point of stability. Price pressures are beginning to ease and customer traffic is once again picking up." (Arts, Entertainment & Recreation)
  • "We have experienced an estimated 25 percent [increase] in new job orders, and in new hires for services." (Professional, Scientific & Technical Services)
  • "Some companies seemed slower to make hiring decisions and/or place new positions on hold due to uncertainty in the economy and political climate." (Management of Companies & Support Services)
  • "Worries about global slowdown persist; however, the housing market appears to have hit its lows and is beginning to climb. This is good news for governmental tax base projections." (Public Administration)
  • "Hurricane Sandy has impacted our business activity tremendously. This emergency should not be misconstrued as a positive increase in business as usual; we merely facilitated emergency equipment and supplies to be delivered to the affected areas and the emergency responders." (Wholesale Trade)
  • "Sales continue to lag, but there are signs of improvement." (Retail Trade)

Here is a link to the full release >



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