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(CEP News) - The services sector in the United States continued its rapid deterioration in December, yet according to a key survey the slowdown was not as bad as expected.
The ISM Non-Manufacturing Index (NMI), a key survey of the services, construction and financial industries, moved up to 40.6 in December, an improvement from the all-time low of 37.3 recorded in November, and marking the first monthly improvement since August. The consensus expected the index to fall to 36.5. All of the major components continued their decline but saw improvement compared with November. Business activity moved up to 39.6 from 33.0, and new orders advanced to 39.9 from 35.4. "According to the NMI, one non-manufacturing industry reported growth in December. Respondents' comments reflect concern about the overall decline in business, lack of funding, budget cuts and lower employment," said Anthony Nieves, chairman of the Institute for Supply Management. The ISM's employment index came in at 34.7, a slight improvement from the 31.3 level in November, confirming extremely weak forecasts for Friday's BLS nonfarm payrolls report. This is the eighth straight month of sub-50 levels. According to the ISM, a reading above 50 represents an expansionary situation, while a score below 50 suggests a contractionary state. By Patrick McGee,
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, edited by Nancy Girgis,
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