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Monday, December 9, 2019 9:03:11 PM EST

Ism Services Updated 04-Dec-19 10:24AM ET
The ISM Non-Manufacturing Index decelerated to 53.9% in November ( consensus 54.8%) from 54.7% in October. The dividing line between expansion and contraction is 50.0%, so the November reading connotes a sector that continues to run in an expansion mode.

12 of 17 non-manufacturing industries reported growth in November.

The Prices Index jumped to 58.5% from 56.6%.

The New Export Orders Index rose to 52.0% from 50.0%.

The key takeaway from the report is that it was underpinned by accelerating growth in both the New Orders Index (to 57.1% from 55.6%) and the Employment Index (to 55.5% from 53.7%), which is not what one would expect to see if it was believed the economy was at a recession tipping point.

According to the ISM, the past relationship between the Non-Manufacturing PMI and the overall economy indicated the November reading corresponds to a 1.9% increase in real GDP on an annualized basis.

Non-Manufacturing ISM index53.954.752.656.453.7
Business Activity51.657.055.261.553.1
New Orders57.155.653.760.354.1
Deliveries (nsa)51.552.551.050.551.5
Inventories (nsa)50.550.553.055.050.0
Exports (nsa)
Imports (nsa)45.048.549.050.553.5
Prices Paid58.556.660.058.256.5