The service industry continues to improve according to the ISM’s non-manufacturing index. The index improved to a reading of 56.1 in December, its highest level since February. December’s improvement marks the fifth increase in six months. The non-manufacturing index has now remained above 50 – indicating industry expansion – for 36 consecutive months.
The details of December’s report were encouraging as well, with new orders improving to 59.3. The employment index jumped 6.0 points, reaching 56.3, its highest level since march. Export orders improved in December, gaining 1.5 points and presenting a much smaller drag on expansion.
Overall business activity edged lower in December, losing 0.9 points, however remain above 60, an extremely strong reading. Inventories improved slightly in December, however remain below their neutral threshold of 50, indicating a drag on expansion.
Read the ISM release.