Two indicators on the US service sector released Monday showed strong new-business orders and hiring in November.
The Institute of Supply Management’s purchasing manager’s index (PMI) — based on a survey of executives — jumped to 57.2. It was the highest level since October 2015 and more than the forecast for 55.5.
A PMI reading above 50 shows expansion.
The employment index spiked to 58.2 from 53.1, indicating that hiring increased at a much faster rate during November.
Markit Economics’ PMI was 54.6 (54.8 forecast.) Service providers recorded the fastest pace of new-work growth in a year.
Some companies told Markit that their clients were more willing to spend post-election, as a lot of the uncertainty had lifted.
Service providers told Markit that they hired more workers in November, although the pace of job creation was weaker than the post-recession average rate. They remained optimistic about the economy’s growth prospects over the next year.
Most economic activity and job creation happens in the services sector, although much of the political rhetoric on both tends to revolve around manufacturing.
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