S&P Global Services PMI: Renewed Upturn in November

The November U.S. services purchasing managers' index (PMI) conducted by S&P Global came in at 50.8, consistent with the forecast. The latest reading keeps the index in expansion territory for the 10th straight month.

From the latest press release, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

"The latest PMI data point to a further cooling of inflation pressures, but the surveys also signal only modest economic growth and near-stagnant employment, with the risk of the expansion losing further momentum as we head towards 2024.

"While service sector businesses continued to report further output gains in November, growth remains considerably weaker than seen earlier in the year, and forward-looking indicators point to growth slowing in the months ahead.

"Firms providing both goods and services have become increasingly concerned about excessive staffing levels in the face of weakened demand, resulting in the smallest overall jobs gain recorded by the survey since the early pandemic lockdowns of 2020.

"The cooling jobs market has been accompanied by lower wage growth which, combined with recent oil price falls, helped pull business cost growth down to its
lowest for three years, dropping in November to a level indicative of inflation approaching the Fed's 2% target in the coming months."

Here is a snapshot of the series since mid-2012.

S&P Global Services PMI