The US ISM Non-manufacturing index declined to 53.9 in November from 54.7. The details of this report suggest the service sector continues to hold up better than manufacturing, though signs of tariff-related pressure are evident, argued analysts at Wells Fargo.
“While the index has been in a trend decline since the start of the year, the deterioration has not been as abrupt as its manufacturing counterpart, and more notably the non-manufacturing index has remained in expansionary territory. While the service sector is not immune to trade-related uncertainty, there is still limited evidence of a more pronounced spillover of weakness from the manufacturing sector. In other words, the service sector should continue to expand.”
“Current conditions faltered in November. The largest retrenchment came in the business activity component, which declined 5.4 points, to 51.6, its lowest level this cycle. Perhaps the best indication that the service side of the economy is holding up, however, is the forward-looking new orders component.”
“Another welcome development was the 1.8-point gain in the employment component, which pushed the index up to 55.5, the highest level in five months. The employment component is a good indication of near-term payroll growth, with this month’s bounce suggesting our estimate for Friday’s employment report of 190,000 net new jobs remains reasonable.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.