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.
The rise in the headline number was led by imports (up 6.0 per cent) and business activity/production (up 5.8 per cent).
However, prices tumbled 8.6 per cent and employment fell 4.6 per cent.
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 per cent [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)