Preliminary
data published by S&P Global on Thursday showed that U.S. private sector
business activity grew again in early November and at a faster pace than in the previous month,
reflecting primarily a stronger expansion in the services sector.
According to
the report, S&P Global flash U.S. Composite Purchasing Manager's Index
(PMI) Output Index came in at 55.3 early this month, up from 54.1 in October. The
latest reading indicated the most robust growth in business activity at U.S. companies since April 2022 (56.0).
A reading above
50 signals an expansion in activity, while a reading below this level signals a
contraction.
S&P Global
flash services PMI checked in at 57.0 in November, up from 55.0 in October. The latest reading pointed to
the largest increase in activity across the services sector since March 2022
(58.0). Economists had expected the services PMI to rise to 55.2.
Meanwhile, S&P
Global flash manufacturing PMI edged up to 48.8 in November from 48.5 in the
previous month. The latest print signalled a shrinkage in business conditions
within the goods-producing sector for a fifth straight month but with the rate
of deterioration easing to the slowest since July. Economists had forecast the manufacturing PMI to advance to 48.8.
S&P Global
noted that an increase in activity in November was due to
rising demand, with new orders picking up sharply to register the strongest
upturn in business inflows since May 2022. Meanwhile, employment decreased for the
fourth successive month, while output price inflation cooled to the lowest
since prices began rising in June 2020, with prices charged for services
showing an especially modest rise.