Service sector grew at a faster pace in November

The service sector expanded for the 11th straight month in November and at the fastest pace in six months. The Institute for Supply Management says its service sector index, which covers 80% of the economy, rose to 55 last month from 54.3 in October. It was the highest reading since May. Any figure over 50 indicates growth. The report follows a string of other indicators this week suggesting the economy is steadily improving. But the Labor Department issued a disappointing jobs report today that showed the expansion didn’t boost hiring in November. “Economic activity is still moving along, but uncertainty and a lack of clarity over the economy and over regulatory issues continue to impede hiring,” says Jennifer Lee, an economist at BMO Capital Markets. Retailers, hotels and restaurants, and the transportation and health care industries were among the 10 industries reporting expansion last month. Six industries contracted, including mining, educational services, and agriculture and forestry.