US services sector growth picks up pace in November

US service sector activity picked up slightly in November to record an 11th straight month of expansion, according to survey data published Tuesday.

The services index of the Institute for Supply Management (ISM) for November was 52.7 percent, up from 51.8 percent in October.

The figure beat analysts' expectations, and was above the 50-point threshold marking growth in the sector.


The uptick in the index was spurred by a rise in the indexes for business activity and employment, ISM survey chair Anthony Nieves said in a statement.

Meanwhile, the index for supplier deliveries contracted at a slower pace than October, and is on the cusp of returning to growth, Nieves added.

A total of 15 services industries reported growth in November, while three saw declines.

Despite the November acceleration in service sector growth, "There is continuing concern about inflation, interest rates and geopolitical events," Nieves said.

"Rising labor costs and labor constraints remain employment-related challenges," he added.

One respondent to the ISM survey from the health care and social assistance sector said there were "signs of recovery" on the horizon, despite tight profit margins.

"Supply chains are operating well, but a few major manufacturers continue to show signs of constraints that have persisted for some time," while capital investment remained constrained, they added.