US service sector rises to near-record level

Bloomberg

A gauge of US service industries unexpectedly rose in November to a near-record level amid gains in business activity and new orders, adding to indications that the sector remains robust in the fourth quarter.
The non-manufacturing index rose to 60.7, an Institute for Supply Management survey showed. That compared with estimates for a decline to 59. The advance was led by business activity and new orders, while a gauge of inventories rose for a third month.
The index, with the second-highest reading since the series began publication in 2008, signals consumer demand for services continues to grow, helping to bolster the economy and US companies.
The report also indicated that continuing trade tensions and easing global growth are affecting service providers, a trend weighing on investors’ perceptions of the economic outlook.
Export orders decelerated by the most since May while a measure of imports rose the most since March. Service companies still face bottlenecks: a measure of backlogs increased, while supplier
delivery times lengthened, though delays eased slightly.
The main gauge increased from 60.3 in October. The index covers sectors representing about 90 percent of the US economy. Readings above 50 in the main index signal expansion. A separate services purchasing-managers index from IHS Markit was at 54.7 in November, compared with 54.8 in the prior month.
The ISM survey of manufacturers also rebounded in
November, data released earlier this week showed, as orders picked up and companies added workers.