The ISM non-manufacturing index showed that the U.S. economy continued to grow at a brisk clip in November. The index rose to 59.3, with notable strength in current activity and new orders.
Heading Into Winter, Economy Is Heating Up
- The ISM non-manufacturing index rose to 59.3 in November, just shy of the post-recession high set in August. Over the past six months, the index has strengthened notably and suggests that the economy is on fine footing heading into 2015.
- The composite index was boosted by increases in current business activity, new orders and supplier delivery times. Backlogs of orders and export orders also picked up.
Prices Creep Higher, Hiring Still Strong
- In contrast to the manufacturing sector, non-manufacturing industries saw prices heat up a bit in November. The prices paid index rose to 54.4, although price pressures remain notably lower than during the middle part of the year.
- The employment index moderated to a still-strong 56.7 in November and supports our call for another solid print of 220,000 nonfarm payrolls on Friday.
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