US service sector at 12-month-high in Nov

According to data reported by Markit Economics, new work orders for companies in the service sector rose at the fastest pace in a year. Markit’s services sector Purchasing Managers’ Index (PMI) was at a reading of 54.6. The number was marginally lower than the 54.8 recorded in October but the rate of growth was still higher than any reading recorded in the first half of 2016.
Any reading above 50 indicates an expansion while any figure below 50 represents a contraction.

The growth in business activity was attributed to the launch of new projects, the boost in new orders and competitive pricing strategies as well as the end of the election cycle and an improvement in economic conditions, according to the latest survey data.

According to Markit Economists, service providers are also optimistic that they will sustain their growth for the next 12 months.