The U.S. services sector climbed in November as the non-manufacturing business activity composite index was 57.2 in the month, compared to 54.8 in September, on a seasonally adjusted basis, the Institute for Supply Management reported Monday.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
Economists polled by Thomson Reuters had expected a 55.4 level.
The prices paid index dipped to 56.3 from 56.6.
The employment index gained to 58.2 from 53.1.
The business activity/production index rose to 61.7 from 57.7, the new orders index was at 57.0, down from 57.7; backlog of orders slid to 51.0 from 52.0; new export orders grew to 57.0 from 55.5; inventories fell to 51.5 from 52.0; inventory sentiment declined to 60.5 from 62.0; the supplier deliveries index gained to 52.0 from 50.5; and imports increased to 54.0 from 53.0.
Members' general comments on business in the month included:
"We had almost [a] 9 percent jump month-over-month on active, secured projects in our variable side of business. We also acquired new customers in [the] past two months." (Construction)
"Looking to close out Q4 with no significant changes positive or negative. Profits overall have been above projections." (Finance & Insurance)
"Our health plan business still continues to struggle with rising costs under Obamacare, which is causing the whole company to experience cost pressures." (Health Care & Social Assistance)
"Current business conditions continue to be depressed more than desired; although, there appears to be slight improvement. As our business is primarily driven by the oil & gas market, we follow the price of oil fairly close." (Mining)
"Outlook for Q1 2017 is looking favorable with Q4 2016 ending as projected, perhaps slightly lower." (Professional, Scientific & Technical Services)
"Increased sales for [the] holidays." (Retail Trade)
"After the beginning of the fiscal year's flurry of orders, things have tapered off." (Public Administration)
