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(Kitco News) –
Gold prices showed little reaction after activity in the U.S. service sector saw modest improvement in November, according to the latest data from the Institute for Supply Management (ISM).
On Tuesday, the ISM said its Services Purchasing Managers Index rose slightly to a reading of 52.7 last month, up from October’s reading of 51.8%. The data was above consensus estimates for a reading of 52.
“The composite index indicated growth in November for the 11th consecutive month after a reading of 49.2 percent in December 2022, which was the first contraction since May 2020,” said ISM Services Business Survey Committee chair Anthony Nieves in the report.
The Employment Index registered 50.7 in November, up from the 50.2 reading the prior month. The Business Activity Index was 55.1 in November, up a full point from the 54.1 reading in October, while the New Orders Index was 55.5 in November, identical to October’s reading.
Readings above 50% in such diffusion indexes signify economic growth and vice-versa. The farther an indicator is above or below 50%, the greater or smaller the rate of change.
“The Supplier Deliveries Index registered 49.6 percent, 2.1 percentage points higher than the 47.5 percent recorded in October,” Nieves said. “The index remained in contraction territory for the second consecutive month, indicating that supplier delivery performance was ‘faster’ in contrast to the ‘slowing’ status in September.”
The Prices Index registered 58.3 in November, a slight decrease from October’s 58.6 reading, while the Inventories Index returned to growth in November, registering a reading of 55.4 percent, an increase of 5.9 points from October’s figure of 49.5 percent.
“Fifteen industries reported growth in November,” Nieves said. “. The Services PMI, by being above 50 percent for the 11th month after a single month of contraction and a prior 30-month period of expansion, continues to indicate sustained growth for the sector, and at a slightly faster rate in November.”
Nieves said that survey respondents expressed continuing concern about inflation, interest rates and geopolitical events. “Rising labor costs and labor constraints remain employment-related challenges,” he said.
Spot gold continued to trade in a range between $2,015 and $2,030 following the 10 am EST release, last trading at $2,021.49 an ounce, down 0.39% on the day.
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