- 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."
