The US economy showed signs of stronger momentum in November as PMI data highlighted robust activity in the services sector. PMI Manufacturing improved slightly to 48.8 from 48.5, remaining in contraction but showing some stabilization. Meanwhile, PMI Services surged to a 32-month high of 57.0 from 55.0, boosting the Composite PMI to 55.3, up from 54.1, the highest in 31 months.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted, “The business mood has brightened in November, with confidence about the year ahead hitting a two-and-a-half-year high.” Optimism was fueled by expectations of lower interest rates and a more pro-business stance from the incoming administration, which supported increased output and stronger order book inflows.
Economic growth appears to be accelerating in Q4, with the survey indicating a pickup in overall activity. At the same time, inflationary pressures are cooling. The survey’s price gauge pointed to only a marginal increase in prices across goods and services, signaling that consumer inflation is running well below Fed’s 2% target.
