Service Sector Employment Rose in November

Tempe, AZ, December 5, 2016—The Non-Manufacturing Index registered 57.2% in November, 2.4 percentage points higher than the October reading of 54.8%, according to the Non-Manufacturing ISM Report On Business.

This represents continued growth in the non-manufacturing sector at a faster rate. This is the 12-month high, and the highest reading since the 58.3 registered in October of 2015.

The Non-Manufacturing Business Activity Index increased to 61.7%, 4 percentage points higher than the October reading of 57.7%, reflecting growth for the 88th consecutive month, at a faster rate in November.

The New Orders Index registered 57%, 0.7 percentage point lower than the reading of 57.7% in October.

The Employment Index increased 5.1 percentage points in November to 58.2% from the October reading of 53.1%.

The Prices Index decreased 0.3 percentage point from the October reading of 56.6% to 56.3%, indicating prices increased in November for the eighth consecutive month at a slightly slower rate.

The 14 non-manufacturing industries reporting growth in November—listed in order—are Agriculture, Forestry, Fishing & Hunting; Retail Trade; Arts, Entertainment & Recreation; Transportation & Warehousing; Other Services; Management of Companies & Support Services; Construction; Finance & Insurance; Professional, Scientific & Technical Services; Accommodation & Food Services; Information; Health Care & Social Assistance; Wholesale Trade; and Mining.

The two industries reporting contraction in November are Real Estate, Rental & Leasing; and Public Administration.