Investing.com - Service sector activity in the U.S. hit a one-year high in November, bolstering optimism over the American economy, industry data showed on Monday.
In a report, the Institute of Supply Management (ISM) said its non-manufacturing purchasing manager's index (PMI) rose to 57.2 last month from 54.8 in October. That was the 82nd consecutive month of growth and its highest reading since October 2015.
Analysts had expected the index to increase to 55.4.
On the index, a reading above 50.0 indicates the non-manufacturing sector economy is generally expanding, below 50.0 indicates the sector is contracting
The Non-Manufacturing Business Activity Index increased to 61.7, 4.0 points higher than October’s reading of 57.7. Analysts had forecast it to rise to 58.0.
The New Orders Index registered 57.0 in November, 0.7 points lower than the reading of 57.7 in the previous month.
The Employment Index increased 5.1 points to 58.2 from Obtober’s reading of 53.1.
The Prices Index decreased 0.3 points to 56.3 from October’s 56.6.
The ISM indicated that the majority of comments from the respondents were positive about business conditions and the direction of the overall economy.
The ISM further noted that all 14 non-manufacturing industries reported growth in November.
Immediately following the report, EUR/USD unchanged at 1.0728, GBP/USD was at 1.2712 from 1.2716 earlier, while USD/JPY was at 114.62 from 114.37 earlier.
The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 100.50 compared to 100.44 prior to the release.
Meanwhile, U.S. stock markets were trading higher after the open. The Dow 30 gained 0.49%, the S&P 500 rose 0.72%, while the Nasdaq Composite traded up 1.00%.
Elsewhere, in the commodities market, gold futures traded at $1,161.95 a troy ounce, compared to $1,165.65 ahead of the data, while crude oil traded at $52.09 a barrel from $52.24 earlier.