WASHINGTON — U.S. services firms expanded at a faster pace in November, a signal that overall economic growth should remain robust.
The Institute for Supply Management said Wednesday that its services index rose to 59.3 last month, up from 57.1 in October. The first gain in two months pulls the index close to the eight-year high of 59.6 reached in August. Any reading over 50 indicates expansion.
The index has been pointing consistently to stronger economic growth and hiring this year. Employers have added a solid average of 228,500 jobs a month so far this year, while gross domestic product has increased at an annual rate of more than 3.5 percent in four of the past five quarters.
Jim O’Sullivan, chief U.S. economist at High Frequency Economics, said the November reading is “more evidence that the recovery has moved into a higher gear in recent months.”
The ISM is a trade group of purchasing managers. Its survey of services firms covers businesses that employ 90 percent of the American workforce, including retail, construction, health care and financial services firms.
The new-orders component of the index climbed to 61.4, which was 2.3 points higher than the October reading of 59.1.
