NEW YORK - The Institute for Supply Management's non-manufacturing business activity composite index was 55.0 in November, up from 54.3 in October, on a seasonally adjusted basis, the group said today.
Economists polled by Thomson Reuters had expected a 54.9 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, slipped to 63.2 from 68.3.
The employment index increased to 52.7 from 50.9.
The business activity/production index slid to 57.0 from 58.4, the new orders index was at 57.7, up from 56.7; backlog of orders dipped to 51.5 from 52.0; new export orders increased to 59.5 from 55.5; inventories gained to 51.5 from 47.5; inventory sentiment fell to 60.0 from 61.5; the supplier deliveries index rose to 52.5 from 51.0; and imports increased to 54.5 from 54.0.
“The NMI (Non-Manufacturing Index) registered 55 percent in November, 0.7 percentage point higher than the 54.3 percent registered in October, and indicating continued growth in the non-manufacturing sector at a slightly faster rate,” said Anthony Nieves, chair of the ISM's Non-Manufacturing Business Survey Committee. “The Non-Manufacturing Business Activity Index decreased 1.4 percentage points to 57 percent, reflecting growth for the 12th consecutive month but at a slower rate than in October. The New Orders Index increased 1 percentage point to 57.7 percent, and the Employment Index increased 1.8 percentage points to 52.7 percent, indicating growth in employment for the third consecutive month and the fifth time in the last seven months. The Prices Index decreased 5.1 percentage points to 63.2 percent, indicating that prices increased slower in November. According to the NMI, 10 non-manufacturing industries reported growth in November. Respondents' comments mostly reflect cautious optimism. There is a degree of uncertainty that still remains for some industries and companies.”
Members' general comments on business in the month included:
"Business remains steady; outlook for fourth quarter is good." (Information)
"Trending favorable — see more activity toward additional staff and capital expenditures for 2011." (Finance & Insurance)
"Business is stable. Customers are exerting a lot of pressure to lower prices." (Agriculture, Forestry, Fishing & Hunting)
"Slight uptick in orders, but nothing to indicate sustainability." (Professional, Scientific & Technical Services)
"This business cycle is cause for continued caution for the foreseeable future. We would like to see some settling of unemployment, retail and home sales — none of which appear to be either forthcoming or predictable. We anticipate continued uncertainty and retrenchment." (Retail Trade)
