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New Service-Sector Index Shows November Bounce Back

Wall Street Journal (11/25/13) Kathleen Madigan

The London-based data provider Markit has rolled out a new U.S. purchasing managers’ index focused on service industries, for which data has been collected since late 2009. The Markit PMI differs from the Institute for Supply Management’s nonmanufacturing PMI in that the Markit survey is sent to senior executives and focuses on private U.S. services.

The Markit report released Nov. 25 shows an increase in the index to 57.1 for November, up from 49.3 in October, meaning that services output “bounced back after having been previously affected by the disruption caused by the government shutdown.” A reading above 50 indicates expansion. However, the flash November report reveals a slowdown in service hiring and a slight decrease in optimism among service providers.