Services sector growth continues across the country as November data shows steady momentum in many core industries. The ISM Services Purchasing Managers Index rose to 52.6, marking the ninth month of expansion in 2025 and underscoring a resilient economy despite mixed signals.
Steady Activity Supports Expansion
Business activity and new orders remained in growth territory, which points to ongoing demand for transportation, health care, hospitality, retail, and technology services. These gains reflect strong consumer engagement and stable business spending. Several national firms reported higher bookings, steady project pipelines, and interest in new contracts. These trends show that many service providers continue to adapt well to shifting economic conditions.
Some indicators have cooled. Service-sector employment contracted for the sixth straight month, aligning with national labor softness. Even so, many firms noted that improved staffing efficiency and technology upgrades helped them maintain service levels. Inventories and order backlogs also improved, which supports steady business planning as companies prepare for early 2026.
Local Businesses See Opportunity
Supply chain conditions shifted as supplier delivery times lengthened due to shutdown-related logistics delays and tariff-driven customs issues. These pressures pushed the Prices Index to 65.4, which remains elevated but lower than the previous month. Despite these challenges, many San Gabriel Valley businesses reported that stable demand helps them manage rising costs. Restaurants, health providers, and service firms in El Monte, Baldwin Park, South El Monte, and Rosemead continue to see consistent customer traffic.
Shops and service providers in Arcadia, Temple City, and Irwindale say steady sales help offset operational pressures. Many owners welcome the broader trend that shows services sector growth continues even during a period of uncertainty. The improvement in inventories and backlogs gives local firms more confidence as they manage supply orders and plan staffing schedules.
Positive Signs Ahead
Tariffs, affordability concerns, and the recent government shutdown remain top issues for many respondents. Even so, the continued expansion highlights the ability of service-based businesses to navigate disruptions. In the San Gabriel Valley, several owners describe this period as a chance to strengthen customer ties, refine operations, and invest in quality.
With nine months of expansion and demand holding firm, the latest report provides encouraging signs for local communities. For many Valley residents and employers, the services sector remains a source of stability as the region heads into a new year.
