The U.S. services sector expanded at a faster pace in November as the non-manufacturing business activity composite index was 59.3 in the month, compared to 57.1 in October, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
Economists polled by Thomson Reuters had expected a 57.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index gained to 54.4 from 52.1.
The employment index decreased to 56.7 from 59.6.
The business activity/production index rose to 64.4 from 60.0, the new orders index was at 61.4, up from 59.1; backlog of orders grew to 55.5 from 51.5; new export orders gained to 57.0 from 53.5; inventories increased to 55.5 from 49.5; inventory sentiment climbed to 63.0 from 58.5; the supplier deliveries index rose to 54.5 from 49.5; and imports slipped to 53.5 from 56.0.
Members' general comments on business in the month included:
"Business is good with new technology and products." (Information)
"General uptick in demand/spending." (Finance & Insurance)
"We are experiencing downward pricing pressures on the price of natural gas as a result of the lower energy prices being driven by OPEC's lower oil prices." (Mining)
"Food cost continues to be a challenge due to cost of goods increases. Beef, produce and turkey markets remain high. Chicken, pork and eggs, although year-over-year are higher; prices have fallen from one month ago." (Accommodation & Food Services)
"Business is strong. Many new accounts want to be implemented before year-end so cost reductions can be included." (Professional, Scientific & Technical Services)
"We are looking forward to a strong holiday season." (Retail Trade)
"We are still seeing continued momentum month-over-month with the strongest area being government accounts." (Wholesale Trade)
