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November 2017 ISM And Markit Services Remain In Expansion

By Kurt Osterberg · On December 5, 2017

The ISM non-manufacturing (aka ISM Services) index continues its growth cycle and marginally declined. Markit PMI Services Index slightly declined but remains in expansion.

Analyst Opinion of the ISM and Markit Services Survey

Both services surveys are in expansion. I would weight the Markit numbers higher which would indicate a slightly slowing service sector.

From Bloomberg / Econoday:

Consensus Range Consensus Actual Markit Services 54.7 to 55.1 54.7 54.5 ISM Services 58.0 to 59.7 59.0 57.4

From Markit:

Service sector business activity growth remains strong in October

Service sector output expansion softens to fivemonth low

Upturn in new business accelerates

Business confidence slips to joint-weakest since February

November survey data signalled a slower rate of expansion in business activity across the US service sector. Although output growth eased slightly to a five-month low, the upturn in new business accelerated and was solid overall. Employment growth meanwhile reached a threemonth peak, which helped alleviate capacity pressures. In line with this, backlog accumulation softened to a five-month low. Inflationary pressures intensified with both input prices and output charges rising at quicker paces. The latest survey also indicated a fall in business confidence to the joint-lowest since February.

The seasonally adjusted IHS Markit U.S. Services Business Activity Index registered 54.5 in November, down from 55.3 in October. Although the latest index reading indicated a slightly weaker output expansion, the overall rate of growth was strong by recent standards nonetheless. Anecdotal evidence suggested that increases in activity were due to greater new order volumes and robust client demand.