ISM November services PMI index 69.1 versus 65.0 estimate

ISM services PMI index for November

• prior month 66.7
  
• new orders 69.7 versus 64.0 estimate. Last month 69.7
  
• employment index 56.5 versus 52.2 estimate. Last month 51.6
  
• prices paid 82.3 versus 80.9 estimate. Last month 82.9
  
• business activity 74.6 versus 69.8 in October
  
• supplier deliveries 75.7 versus 75.7 last month
  
• backlog of orders 65.9 versus 67.3 last month
  
• new export orders of 57.9 versus 62.3 last month
  
• imports 50.5 versus 53.3 last month
  
• inventory sentiment 36.4 versus 37.3 last month

Some highlights:

• The index is the highest reading since the inception of the index in 2008. 
• The 12-month average is 62.1 percent, which reflects strong and sustained demand in the services sector. 
• The November reading indicates the services sector grew for the 18th consecutive month after two months of contraction and 122 months of growth before that.

Anthony Nieves, chair of the ISM services business survey committee said:

Economic activity in the services sector grew in November for the 18th month in a row - with the Services PMI® setting a record for the fifth time in 2021 - say the nation's purchasing and supply executives in the latest Services ISM Report On Business. In November, the Services PMI® registered another all-time high of 69.1 percent. Demand continues to be strong, reflected by subindex data in November. The Backlog of Orders Index registered 65.9 percent, 1.4 percentage points lower than October's all-time high reading of 67.3 percent. Services businesses continue to struggle replenishing inventories, as the Inventories Index (48.2 percent, up 6 percentage points from October's reading of 42.2 percent) and the Inventory Sentiment Index (an all-time low of 36.4 percent, down 0.9 percentage point from the previous month's figure of 37.3 percent) stayed in contraction or "too low" territory in November. All 18 services industries reporting growth in November - listed in order - are: Real Estate, Rental & Leasing; Transportation & Warehousing; Retail Trade; Agriculture, Forestry, Fishing & Hunting; Management of Companies & Support Services; Utilities; Wholesale Trade; Mining; Public Administration; Construction; Health Care & Social Assistance; Arts, Entertainment & Recreation; Other Services✣; Professional, Scientific & Technical Services; Finance & Insurance; Information; Educational Services; and Accommodation & Food Services.

Like the Markit report, it is likely most of the survey data was collected before the recent omicron news.

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December 04, 2021 at 03:00AM

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