The U.S. service sector contracted dramatically in November, as employment, new orders and prices fell precipitously, hurting retailers, hotels and other industries.
The Institute for Supply Management, a trade group of purchasing executives, said Wednesday that its services sector index fell to 37.3 in November from 44.4 in October. It was far below the reading of 42 expected by Wall Street economists.
Readings for new orders, employment and prices all hit the lowest levels on records dating back to 1997. Of 18 industries in the survey, including warehousing, real estate, restaurants and wholesale trade, only one -- health care and social assistance -- reported growth.
The report, based on a survey of the institute's members, covers indicators including deliveries, inventories and backlogs. Its sister manufacturing report on Monday showed the worst reading since May 1982, when the country was near the end of a 16-month recession.
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