The Institute for Supply Management’s index (NAPMNMI) of U.S. non-manufacturing industries, which account for about 90 percent of the economy, rose to 52.6 in December from 52 a month earlier.
The Tempe, Arizona-based group’s measure was projected to rise to 53, according to the median forecast in a Bloomberg News survey. Estimates of the 65 economists surveyed ranged from 52 to 55. Fifty is the dividing line between expansion and contraction.
The ISM survey of U.S. services covers industries ranging from utilities and retailing to health care and finance. A Jan. 3 report by the group showed manufacturing strengthened in December as production and orders accelerated.
Two other reports today showed the labor market is improving. Companies added 325,000 workers to their payrolls in December, the most since record-keeping began in 2001, after a 204,000 gain the prior month, according to Roseland, New Jersey- based ADP Employer Services. The gain topped the highest estimate in a Bloomberg survey of economists.
First-time claims for jobless benefits (INJCJC) declined 15,000 last week to 372,000, the Labor Department said. The average over the past four weeks fell to the lowest level in more than three years.
