Preliminary estimate came in at 56.5. Services index comes in at 58.0 up from 57.0 in the flash estimate
- Markit PMI composite 57.2 versus 56.5 preliminary
- Services index 58.0 vs 57.0 preliminary
Chris Williamson, the chief business economist at IHS Markit says:
"US business activity continued to grow at a solid rate in November, adding to signs that the pace of economic growth is accelerating in the fourth quarter after the Delta-wave induced slowdown of the third quarter. While growth is not matching the surge seen earlier in the year when the economy reopened, the fourth quarter expansion should be well above the economy's long-run trend to mark a solid end to the year. "Growth is lopsided, however, being led by the service sector as manufacturing remains heavily constricted by supply shortages and, in some cases, labor supply issues. These constraints are also increasingly affecting service providers, as evidenced by the service sector reporting a near record build-up of uncompleted orders during November as companies often lacked the capacity to meet demand. Cost pressures in the service sector also spiked higher in November, generally linked to higher prices paid for inputs and staff due to shortages, the rate of inflation running just shy of May's all-time peak. "While business expectations for the year ahead rose in November, the vast majority of the survey data were collected prior to the news of the Omicron variant, which casts a renewed shadow of uncertainty over the outlook for business and poses a downside risk to near-term growth prospects."
The report had the majority of the collected survey data before the omicron virus. That will likely lead to a downside projection going forward all things being equal
