US Services, Manufacturing Activity Contracts in November
Both the U.S. Flash Services PMI and Flash Manufacturing PMI contracted in November, coming in under the 50 level that separates expansion from contraction. The figures were also below the forecasts.
The S&P Global Flash November composite purchasing managers’ index slid about 2 points to 46.3, the second-lowest level since the immediate aftermath of the pandemic, the group reported Wednesday. The latest print was among the worst in data back to 2009.
U.S. Flash Services PMI came in at 46.1, down from an upwardly revised 47.8 and lower than the 38.0 forecast.
U.S. Flash Manufacturing PMI came in at 47.6, lower than the upwardly revised 50.4 and below the 50.0 estimate.
“Companies are reporting increasing headwinds from the rising cost of living, tightening financial conditions – notably higher borrowing costs – and weakened demand across both home and export markets,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
“November even saw increasing numbers of suppliers, factories and service providers offering discounts to help boost flagging sales,” Williamson said.
“In this environment, inflationary pressures should continue to cool in the months ahead, potentially markedly, but the economy meanwhile continues to head deeper into a likely recession, he said.