Non-manufacturing ISM has reached the annual peak

05.12.2016

In November, the activity in the US services sector reached an annual peak, increasing optimism about the US economy, data showed on Monday.

The Institute for Supply Management (ISM) said its index of purchasing managers in the non-US sector rose to 57.2 last month from 54.8 in October, showing growth for the 82nd month in a row and the highest value since October 2015.

Analysts had expected the index to rise to only 55.4.

About the index, a reading below 50 suggests a contraction of the activity in the previous month, and when it is higher, it suggests growth.

The index of business activity in the services sector rose to 61.7, which is 4.0 points above October's 57.7. The analysts expected an increase to 58.0.

The new orders index was registered in November at 57.0, 0.7 points lower than the 57.7 in the previous month.

The employment index rose 5.1 points to 58.2 from October's 53.1.

The price index decreased by 0.3 points to 56.3 from October's 56.6.

ISM said that the majority of respondents positively assessed the business environment and the economy as a whole.

ISM also said that all 14 non-manufacturing industries showed increase in activity in November.

Immediately after the ISM report publication, the EUR/USD pair was unchanged at 1.0728; GBP/USD was traded at 1.2712 after 1.2716, while USD/JPY was trading at 114.62 after 114.37.

The USD index, which shows the relationship of the US dollar against a basket of major currencies, was traded at 100.50 levels, compared with 100.44 before the release.

The stock markets in the United States show growth after opening. Dow 30 rose 0.49%, S&P 500 rose 0.72%, while Nasdaq Composite rose 1.00%.

On the commodities market, gold futures were traded at $ 1161.95 per ounce, compared with $ 1165.65 before the ISM data, while WTI crude oil futures was traded at $ 52.09 a barrel after $ 52.24.

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