Overview
- The ISM nonmanufacturing index rose to 54.4 from 52.6, beating a 52.3 consensus and signaling stronger late‑year momentum.
- Services employment returned to expansion at 52.0 after six consecutive months of contraction, pointing to a firmer labor backdrop.
- New orders climbed to 57.9 and export orders turned positive, while backlogs stayed weak and fell more quickly.
- Prices paid eased to 64.3 but remained high, suggesting inflation could run above the Federal Reserve’s 2% target for some time.
- With fourth‑quarter growth pressured by a 43‑day government shutdown and mixed PMI signals—including weak manufacturing—analysts expect the Fed to keep rates unchanged in January.