More Videos
- White House to Crank Up Pressure on Mortgage Industry
- Treasury Threatens Banks, Not Borrowers
- Dubai World to Restructure About $26 Billion of Debt
- Cramer: Dubai Can’t Sink These 6 Dividend Stocks
- Bove: 26 Banks May Need To Raise More Capital
- Lesson From Dubai: Start Cutting Risk In Your Portfolio
- Iranian Seizure of British Yacht Pushes Oil Above $77
- Should Homeowners Be Able to Stop Paying Mortgage?
- Buffett's Predictions For Next Year—And Every Year
- Treasury Threatens Banks, Not Borrowers
- We're Approaching a Market Bubble: Portfolio Manager
- Hershey Shares: What Options Are Saying
- Nov. 30: Unusual Volume Leaders
- Why Careful Shoppers Are Great for the Box Office
- Blue Nile CEO: 'We're Having the Best Cyber Monday Ever'
- Best Online Retailers to Buy Now: Internet Analyst
- ESPN The Magazine’s Body Issue: A Financial Success
- Cyber Monday: The Last Vestige of Dotcom Hype
MOST SHARED
- Timeless and Time-Tested Warren Buffett Watch Predictions
- Should Homeowners Be Able To Walk Away From Mortgage?
- Goldman Sachs Party Ban: No Gatherings of 12 or More
- Dubai World Set to Restructure About $26 Billion of Total Debt
- Bove: 26 Banks May Need To Raise More Capital
- Notre Dame Fires Charlie Weis After 5 Seasons
- Treasury Threatens Banks, Not Borrowers
- Nov. 30: Unusual Volume Leaders
- Oil Demand Sees Year-Over-Year Rise, First Since 2007
- Blue Nile CEO: 'We're Having the Best Cyber Monday Ever'
Text Size 
A measure of the U.S. service sector slumped further than expected to a record low in November, according to a report released on Wednesday.
The news comes as a separate report showed worker productivity slowed in the summer to the smallest advance since late last year while wage pressures increased. Neither development is expected to raise inflation alarms at the Federal Reserve.
 |
The Institute for Supply Management said its non-manufacturing index came in at 37.3 versus 44.4 in October.
The level of 50 separates expansion from contraction.
Economists expected a reading of 42.0, according to the median of 71 forecasts in a Reuters poll which ranged from 37.0 to 46.5.
The service sector represents about 80 percent of U.S. economic activity, including businesses such as banks, airlines, hotels and restaurants.
Meanwhile, worker productivity slowed in the summer to the smallest advance since late last year while wage pressures increased. Neither development is expected to raise inflation alarms at the Federal Reserve.
The Labor Department says productivity, the key ingredient for rising living standards, rose at an annual rate of 1.3 percent in the July-September quarter. That's down from the 3.6 percent growth rate in the second quarter.
Wage pressures, as measured by unit labor costs, rose at an annual rate of 2.8 percent, after having declined at a 2.6 percent rate in the second quarter.
The Fed closely monitors developments in productivity and wages to see if inflation is getting out of hand. But the central bank is likely to view the recent developments as temporary and not long-run trends.
Print
Email
- Ever wished your cab driver would stop chatting and just get to where you're going? Well, that moment is closer than ever.
- UPS is giving its customers the option to offset its carbon emissions when sending a package.
- Romania's presidential campaign has been rocked by a video that may show the president striking a 10-year-old boy.
- Raising alligators is hard work, and the fickle taste of rich consumers has just made it much harder, says the NY Times.
- A recent issue of ESPN Magazine was one of its top sellers ever, and it only took scantily clad athletes to make it happen.
- The continued real estate boom in China is partially fueled by a generational flood of newlyweds.
Data is a real-time snapshot *Data is delayed at least 15 minutes