US services activity grows but hiring slows - RTHK
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US services activity grows but hiring slows

2025-12-04 HKT 08:02
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  • Wednesday's ISM report showed employment contracted for the sixth month on the trot. Photo: Reuters
    Wednesday's ISM report showed employment contracted for the sixth month on the trot. Photo: Reuters
The US services sector reported growth in November with most sectors seeing gains, although employment contracted for the sixth month in a row, according to a survey released on Wednesday.

The Institute of Supply Management's (ISM) overall rating came in at 52.6, a 0.2 percentage point gain from the prior month and slightly more than analyst expectations.

Areas of expansion included business activity, new orders and inventories. But the employment index came in at 48.9, below the 50 level that separates growth from contraction.

The report comes on the heels of Monday's ISM survey on manufacturing, which also showed contraction in the employment index.

The Federal Reserve is expected to cut interest rates for the third straight time next week, with policy makers describing a weakening job market as more consequential than inflation right now.

Wednesday's ISM report showed 12 industries growing and five in contraction.

A retail trade official surveyed for the report described business conditions as "strong," with "stable" pricing.

But an official in the information sector was among those pointing to trade uncertainty, saying "business still slow due to tariffs."

A real estate official said tariff uncertainty "continues to add complexity to purchasing, and economic conditions remain mixed, with some indicators pointing to good prospects and others to worrying ones." (AFP)

US services activity grows but hiring slows