US Economy: US service providers are experiencing a boom

US service providers are experiencing a boom

The purchasing managers’ index for services in the U.S. rose in November. It rose 52.7 points, beating sector expectations.

Posted: December 5, 2023, 4:33 pm

The U.S. service sector is above the 50-point growth curve.

Image: Andrew Horrer/Bloomberg

The pace of U.S. service provider growth picked up slightly in November. According to the ISM survey released on Tuesday, the Purchasing Managers’ Index for the services sector rose to 52.7 points from 51.8 points in October. Experts in a Reuters poll expected only a slight increase to 52 points. So services sector is above the growth limit of 50 points. New business increased at a similar pace recently, while job creation accelerated slightly from low levels.

The US Federal Reserve (Fed) is fighting high inflation with tight monetary policy. However, after some sharp interest rate hikes, the central bank recently left the key monetary policy rate at 5.25 to 5.5% twice in a row. US Federal Reserve Chairman Jerome Powell signaled another pause ahead of the last interest rate decision of the year scheduled for December 13 and dismissed speculation about future monetary policy easing. Fed director Christopher Waller has opened discussions about a possible interest rate cut next year.