NEW YORK – The U.S. services sector expanded at a quicker pace in December as the non-manufacturing business activity composite index was 52.6 in the month, compared to 52.0 in November, on a seasonally adjusted basis, the Institute for Supply Management reported Thursday.
Economists polled by Thomson Reuters had expected a 51.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, dipped to 61.2 from 62.5.
The employment index increased to 49.4 from 48.9.
The business activity/production index held at 56.2, the new orders index was at 53.2, up from 53.0; backlog of orders dropped to 45.5 from 48.0; new export orders fell to 51.0 from 55.5; inventories slid to 48.5 from 52.5; inventory sentiment declined to 59.5 from 63.0; the supplier deliveries index grew to 51.5 from 50.0; and imports increased to 54.0 from 48.5.
Members' general comments on business in the month included:
“Year-end uptick in activity.” (Finance & Insurance)
“Business is stabilizing — some good signs in the private sector for commercial construction.” (Construction)
“Some additional proposal requests, but clients continue to delay decisions on capital spending. Expect first quarter 2012 activity to be sluggish.” (Professional, Scientific & Technical Services)
“Automotive industry growth seems to be outpacing the rest of the economy.” (Information)
“Demand increasing gradually.” (Wholesale Trade)
“Business is holding steady. Outlook for December and first quarter 2012 is good.” (Retail Trade)
