US: ISM Services PMI improves to 56.5 in November vs. 53.1 expected
- US ISM Services PMI rose modestly in November.
- US Dollar Index gained traction after the data and climbed to the 105.00 area.
The business activity in the US service sector continued to expand at an accelerating pace in November with the ISM Services PMI rising to 56.5 in November from 54.4 in October. This reading came in better than the market expectation of 53.1.
The inflation component of the survey, the Prices Paid Index, declined to 70 from 70.7, compared to analysts' estimate of 73.6. The Employment Index rose to 51.1 from 49.1 and the New Orders Index edged lower to 56 from 56.5.
Commenting on the data, "based on comments from Business Survey Committee respondents, increased capacity and shorter lead times have resulted in a continued improvement in supply chain and logistics performance," said Anthony Nieves, Chair of the Institute for Supply Management Services Business Survey Committee. "A new fiscal period and the holiday season have contributed to stronger business activity and increased employment."
Market reaction
The US Dollar gathered strength against its rivals with the initial reaction and the US Dollar Index was last seen rising 0.46% on the day at 105.00.