Growth in the U.S. service sector saw a significant acceleration in the month of November, according to a report released by the Institute for Supply Management on Monday.
The ISM said its non-manufacturing index climbed to 57.2 in November from 54.8 in October, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 55.5.
"The Non-Manufacturing sector rebounded after a slight cooling-off in October," said Anthony Nieves, chair of the ISM Non-Manufacturing Business Survey Committee. "The majority of respondents' comments are positive about business conditions and the direction of the overall economy."
The increase by the headline index came amid a substantial jump by the business activity index, which surged up to 61.7 in November from 57.7 in October.
Job growth in the service sector also saw a significant increase, with the employment index spiking to 58.2 in November from 53.1 in the previous month.
Last Thursday, the ISM released a separate report showing a bigger than expected increase by its index of manufacturing activity.
The ISM said its purchasing managers index climbed to 53.2 in November from 51.9 in October, with a reading above 50 indicating growth in the manufacturing sector. Economists had expected the index to inch up to 52.3.
With the bigger than expected increase, the index reached its highest level since a matching reading in June. The index has not been higher since early 2015.
by RTT Staff Writer
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