ISM Services PMI Declines in November

The ISM Services Purchasing Manager's Index (PMI) fell to 52.1 in November, a significant drop from 56 in October, and below expectations of 55.5. This decline marks the slowest growth in the services sector in three months, influenced by reduced business activity, new orders, and employment, although 14 out of 18 industries still reported growth. The employment index remained in expansion territory, indicating ongoing payroll growth, while supplier delivery times improved, signaling faster deliveries. Despite the overall dip in the ISM index, S&P Global's services PMI rose to 56.1, reflecting stronger service sector output. Analysts remain cautiously optimistic, noting that the recent political climate and economic outlook may spur further growth. Nonetheless, concerns regarding tariffs and a potential slowdown in residential construction persist, highlighting the uncertainty ahead.