US: ISM services index accelerates in November – 05/12/2022 at 16:41


The American flag flies in front of the Washington Monument

WASHINGTON (Reuters) – Growth in U.S. service sector activity unexpectedly accelerated in November as employment in the sector rose, signs the economy was resilient despite the rapid recovery in interest rates.

The Institute for Supply Management (ISM) monthly survey released on Monday showed the ISM services index rose to 56.5 from 54.4 the previous month, as economists polled by Reuters on average expected a deceleration to 53.3.

However, the sub-index measuring the development of new orders revealed a slowdown to 56.0 after 56.5 in October.

The share of prices paid by service companies also fell to 70.0 after 70.7, but employment rose to 51.5 from 49.1 the month before.

The threshold of 50 separates contraction and expansion of activity.

Another survey of the situation in services, the S&P Global among purchasing managers, also shows an improvement in activity in November, its index falling to 46.2 after 46.1 in October.

On Wall Street, the three main indexes extended their losses after the release of this data, falling from 0.8% to 1%. Bond yields are rising, with the 10-year rising nearly nine basis points to 3.59%, on fears that the US Federal Reserve (Fed) could abandon an expected pause in the pace of rate hikes after its December 14 meeting.

(Reporting by Lucia Mutikani; French editing by Claude Chendjou, editing by Kate Entringer)

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