The ISM Non-Manufacturing Index for November increased to 56.5% (consensus 53.5%) from 54.4% in October.
The dividing line between expansion and contraction is 50.0%. The November reading marks the 30th straight month of growth for the services sector.
The key takeaway from the report is that business activity for the non-manufacturing sector, which comprises the largest swath of U.S. economic activity, strengthened in November, aiding the view that the Fed will keep rates higher for longer.