ISM Services Index Falls to Record Low

The U.S. economy’s service sector declined in November at the fastest pace on record, the Institute for Supply Management said Wednesday.

ISM’s monthly services index fell to a reading of 37.3, the lowest reading since records began in 1997, the group said in its monthly report. The reading was 44.4 in October.

Figures of more than 50 indicate expansion, while below that shows contraction.

The services index measures non-manufacturing components of the economy.

Economists had forecast a decline to reading of 42, Bloomberg reported.

The services sector, which includes transportation, retail sales and financial services, accounts for nearly two-thirds of the U.S. gross domestic product.