Service sector

ISM: growth in the services sector continues in December

The ISM services index recorded 62.0% in December; 7.1 percentage points below November’s reading of 69.1%. The reading represents the nineteenth straight month of growth for the services sector, which has expanded for all but two of the past 143 months.

Sixteen non-manufacturing industries recorded growth. Survey respondents noted that “activity continues to maintain a strong pace. Inventory levels and breakdowns are persistent at our suppliers; however, we are starting to see some relief in the supply chain, but not yet below the critical point. Prices continue to rise with shipping costs being the main driver due to inflated pressures on capacity and fuel costs. »

The business activity index recorded 67.6% in December, down 7.0 percentage points from November’s reading of 74.6%. This represents growth for the nineteenth consecutive month.

Employment in the services sector increased in December for the sixth month and registered 54.9% in December, 1.6% less than in November. Eleven industries reported employment growth for the month.

The new orders index was 61.5%, down 8.2% from the previous month. Comments from respondents include: “New customers have been added resulting in increased orders and business activity” and “Increased customer activity related to infrastructure needs.”

The supplier shipments index recorded 63.9% in December, down 11.8% from the previous month. A reading above 50% indicates slower deliveries.

Read the ISM version.