Consecutive growth in the manufacturing and non-manufacturing indexes continued in November, indicating strong economic activity in both sectors.
ISM non-manufacturing index
The ISM non-manufacturing index grew 2.2 percent from October to November, from 57.1 to 59.3. The reading is significantly higher than November 2013, when it registered 53.9 percent. This marks the 58th consecutive month of economic growth in the sector.
Business activity rose 4.4 percent to 64.4, which is the 64th consecutive month of growth in the index. The new orders index grew 2.3 percentage points to 61.4 percent, as did the prices index, which increased from 52.1 to 54.4 percent.
The employment index decreased 2.9 percentage points to 56.7, but a reading above 50 still marks growth in the index and is the ninth month of consecutive growth for non-manufacturing employment.
Fourteen non-manufacturing industries reported growth in November and three reported contraction. The three industries reporting contraction are Arts, Entertainment & Recreation; Utilities; and Educational Services.
ISM manufacturing index
The ISM manufacturing index decreased 0.3 percent to 58.7 in November but the reading is a 1.5 percent increase from 57.3 in the previous year. This marks the 18th consecutive month of expansion and the 66th consecutive month for overall economy growth.
The new orders index registered 66 percent, a 0.2 percent increase, while the production index was 64.4, a 0.4 percent decrease from October. The employment index decreased 0.6 percent to 54.9 but marks the 17th consecutive month for growth.
Fourteen manufacturing industries reported growth in November, with Food, Beverage & Tobacco Products leading the way. Only one industry reported contraction: Apparel, Leather & Allied Products.
ADP employment report
Private sector employment increased by 208,000 in November, marking the third consecutive month of numbers above 200,000, indicating continued job growth.
November was a strong month for small businesses, which added 101,000 jobs. This is almost comparable to the number of jobs added in medium and large businesses this month, at 65,000 and 42,000 respectively.