The S&P 500 (SPX) opened in negative territory on Wednesday but has since turned positive after ISM’s Services Purchasing Managers’ Index (PMI) rose to a nine-month high.
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November’s services PMI came in at 52.6, higher than the consensus estimate of 52.0 and rising from 52.4 in October. The index measures the health and activity of the services sector, tracking factors like employment, new orders, and prices paid. A reading above 50 indicates expansion, while a reading below 50 points to contraction.
Tariffs Continue to Pressure Services Demand
Employment rose to 48.9 from 48.2, while new orders fell to 52.9 from 56.2. Meanwhile, prices paid cooled to 65.4 from 70.0 in a sign of easing inflationary pressures.
“The continued expansion in both the Business Activity and New Orders indexes in November, and the highest Backlog of Orders index reading since February 2025 are positive signs of an emerging recovery for the services sector,” said ISM Chair Steve Miller.
At the same time, survey respondents continue to point to tariffs and the aftereffects of the government shutdown as headwinds to demand and prices. Furthermore, the services PMI 12-month average is at its lowest level since August 2024 and its second-lowest level since June 2010.
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