US ISM nonmanufacturing: Solid increase above expectations - Natixis

The US ISM nonmanufacturing index increased more than expected in November (from 54.8 to 57.2) as noted by the Research Team at Natixis.

Key Quotes

“The increase was driven by business activity, employment and deliveries. All in all, the composite level of ISM manufacturing and nonmanufacturing is consistent with GDP growth being above 2% YoY.”  

• ISM non-manufacturing gained 2.4pts in November to reach 57.2, above expectations (consensus: 55.5 / Natixis: 54.8). This is the highest level in 13 months. Business activity, deliveries and employment all strengthened.  New orders declined slightly but remained at a relatively high level. 
• All in all, ISM nonmanufacturing survey brought a positive surprise and suggests that the services sector is expanding at a comfortable pace. Taken together with the ISM manufacturing survey released last week, which was also better than expected, the current level of the ISM composite is consistent with a further acceleration in growth (on the year-over-year basis) in Q4.”