December 04, 2024 at 02:45PM
Prelim was 57.0
Prior was 55.0
Composite 54.9 vs 55.3 prelim (54.1 prior).
Services PMI jumps to 56.1 in November from 55.0 in October
Fastest expansion since March 2022
New orders growth strongest since April 2022
Employment falls for 4th straight month despite strong activity
Output price inflation hits 4.5-year low
The ISM services report is due at the top of the hour.
Chris Williamson, Chief Business Economist at S&P Global
Market Intelligence
“Improved service sector output offset a further decline in
manufacturing during November, helping drive the overall
pace of growth of business activity to the fastest for over two
and a half years. The recent survey data are consistent with
GDP growing at an annualized 2.6% rate in the fourth quarter,
assuming a similarly robust expansion is seen in December.
“Companies have reported stronger demand for services
thanks to the clearing of political uncertainty following the
election, as well as brighter prospects for the economy in
2025 linked to the incoming administration and hopes for
lower interest rates. The latter, alongside strong market gains
in recent weeks, has helped drive an especially strong surge
in demand for financial services, though November also saw
robust growth for business and consumer services.
“It was surprising to see employment continue to fall, given the
strength in demand for services reported during November,
which hints at ongoing labor supply issues and the potential
for stubborn wage growth. However, despite another month
of above-average input cost inflation in the services sector,
average prices charged for services rose only very slightly amid
increased competition.”
This article was written by Adam Button at www.forexlive.com.
