WASHINGTON, Jan. 6 (Chinese media) -- Business activity in the U.S. service sector contracted for the third consecutive month but at a slightly slower pace in December, the Institute for Supply Management (ISM) said Tuesday in its latest non-manufacturing survey.
The Tempe, Arizona-based research group said its index of business activity in the non-manufacturing sector registered 40.6 last month, higher than 37.0 expected by economists and 37.3 in November.
A reading at or above 50 indicates expansion, while one below indicates contraction. The index was 50.2 in September and 44.4 in October.
In December, the new orders index increased 4.5 percentage points to 39.9 from the previous month and the employment index rose 3.4 percentage points to 34.7, representing improvements compared with the previous month.
Meanwhile, the index for new export orders increased to 39.5 from 34.5. The production index rose to 39.6 from 33.0.
The prices index decreased 0.6 percentage point to 36 in December, indicating a decrease in prices from November. That was the lowest level for the index since it was first reported in 1997.
The service sector -- everything from restaurants and hotels to banks and airlines -- represents about 80 percent of economic activity in the United States.
Of 18 industries in the survey, the retail sector was the only one that reported growth in December, despite what most analysts anticipate will be an especially weak holiday season for retailers.
The ISM is a trade association representing approximately 40,000 supply management professionals. Its service sector index reflects the opinions of purchasing and supply executives at non-manufacturing industries.
Posts
No comments:
Post a Comment