December's positive report from the Institute for Supply Management on U.S. manufacturing activity was followed yesterday by the ISM's report on non-manufacturing activity. From Bloomberg:
U.S. services expanded at a stepped-up pace in December, capping a record year for the economy's largest segment, a private survey found.
The Institute for Supply Management's index of business at non-manufacturing companies rose to 63.1 last month from 61.3 in November. Any reading higher than 50 means growth. The average of 62.5 for 2004 is the highest since the survey began in 1997.
Measures of orders, order backlogs and exports increased, according to survey of purchasing executives in industries including retail trade, banking and insurance. A post-Christmas surge in retail sales suggests consumers have the incomes and confidence to keep driving economic growth, economists said.