The U.S. service sector in November showed an expansion for the 51st month in the 54 months since the recovery from the pandemic began, according to the Institute for Supply Management’s services purchasing managers index released on Wednesday.
With the labor market at full employment and wages growing above inflation, the American service sector is likely to outperform heading into the critical holiday shopping season.
Read more of RSM’s insights on the economy and the middle market.
The November survey showed that service sector growth eased to 52.1 indicating a slower pace of economic expansion, while prices paid increased to 58.2, employment growth slowed to 51.5 and new orders arrived at 53.7. The top-line 52.1 reading is below the average of 54.9 posted between 2000 and 2024.
At an industry level, 14 indicated growth while three reported contraction.
The supplier deliveries index registered 49.5, 6.9 points lower than the 56.4 recorded in October. The index was in contraction territory for the sixth time this year—indicating faster supplier delivery performance—after two months in expansion, or “slower” territory.
Backlog of orders moderated to 47.1 and inventory sentiment increased to 54.6, which suggests that survey participants are preparing for a strong close to the year.
