U.S. service sector growth in November hits nine-month high; payment price index falls to over six-month low

According to Jinse Finance, the Institute for Supply Management (ISM) announced on Wednesday that the US Services Index rose slightly by 0.2 to a nine-month high of 52.6. A reading above 50 indicates the sector is in an expansion phase. The ISM Services and Materials Prices Paid Index showed that growth was the slowest in seven months. Although still at a historically high level, this figure suggests that inflationary pressures have eased. The overall Services Index was supported by longer supplier delivery times and further improvements in business activity. The Supplier Deliveries Index rose by 3.3 points to the highest level in over a year. This increase may reflect the challenges companies face with tariffs as they seek sources of products in a complex trade environment. The Business Activity Index rose to a three-month high of 54.5. Meanwhile, order growth slowed from a one-year high. Employment in the services sector showed further signs of stabilization. The Employment Index rose to a six-month high of 48.9, indicating the pace of job declines has slowed. According to one ISM indicator, inventories expanded at the fastest pace in seven months. Nevertheless, the Inventory Sentiment Index eased, indicating fewer service providers believe their inventory levels are too high.