Service Sector Still Strong, Prices Paid Decelerates

- ISM Non-manufacturing for November fell to 58.5 versus estimates of 59.0 and a reading of 60.0 in October.

BOTTOM LINE: Growth in US service industries slowed in November after accelerating the prior month by the most in more than three years, Bloomberg reported. The Prices Paid component of the index fell to 74.2 from 78 in October. The export orders component of the index rose to 57 from 54.5. The employment component of the index rose to 57 from 52.9. I continue to expect the service sector, which accounts for two-thirds of the US economy, to remain healthy over the intermediate-term as consumer sentiment improves, energy prices continue to fall, stocks rise, the job market stays healthy and interest rates remain low by historical standards.