US November services PMI from S&P Global 51.3 vs 50.6 expected

<ul><li><a href="https://www.forexlive.com/news/us-september-sp-global-flash-services-pmi-509-vs-498-expected-20231024/" target="_blank" rel="follow">Prior </a>was 49.4</li><li>Manufacturing 48.2 vs 49.3 expected (prior 49.8)</li><li>Composite index 51.0 vs 50.7 prior</li><li>Cost pressures gained momentum as input
prices increased at the quickest pace since September</li><li>Although firms continued to pass through higher costs to
customers, and at a strong rate, the overall pace of prices
charged inflation softened from November</li><li>Employment improves, highest since Sept</li></ul><p>The services PMI hit a five-month high on a jump in new orders. Eyes are on inflation and there was a small uptick here. That's not moving in the right direction but it's tough to get excited about a small uptick.</p><p>The services PMI hit a five-month high on a jump in new orders.</p><p>Comments in the report from Chris Williamson, Chief Business
Economist at S&amp;P Global Market Intelligence:</p><blockquote>"The early PMI data indicate that the US economy picked
up a little momentum in December, closing off the year
with the fastest growth recorded since July.
</blockquote><blockquote>“Looser financial conditions have helped boost demand,
business activity and employment in the service sector,
and have also helped lift future output expectations
higher. However, the increased cost of living and
cautious approach to spending by households and
businesses means the overall rate of service sector
growth remains far short of that witnessed during the
travel and leisure revival back in the spring and summer.
</blockquote><blockquote>“Manufacturing meanwhile remains a drag on the
economy, with an increased rate of order book decline
prompting factories to reduce production, cut back on
headcounts and scale back their input buying.
</blockquote><blockquote>“Despite the December upturn, the survey therefore
signals only weak GDP growth in the fourth quarter.
</blockquote><blockquote>“The survey’s selling price gauge, which tends to lead
changes in consumer price inflation, remains sticky but at
a level which is indicative of CPI running only modestly
above 2%. Service sector input cost inflation, a key
gauge of core inflation, once again remained notably elevated by historical standards, though even here the
average rate of increase in the fourth quarter has been
the lowest since mid-2020."</blockquote><p>The market reaction to this report has been minimal.</p>

This article was written by Adam Button at www.forexlive.com.