US PMIs Tumble To 4-Month Lows, Signal Just 2% GDP Growth
After reassuringly positive Eurozone PMIs, US Manufacturing and Services disapointed with the composite PMI slumping to 5-month lows in November.
- Flash U.S. Composite Output Index at 54.6 (55.2 in October). 4-month low.
- Flash U.S. Services Business Activity Index at 54.7 (55.3 in October). 4-month low.
- Flash U.S. Manufacturing PMI at 53.8 (54.6 in October). 2-month low.
- Flash U.S. Manufacturing Output Index at 54.3 (54.6 in October). 2-month low.
Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at IHS Markit said:
“US businesses reported another month of solid growth in November, putting the economy on course for a reasonable, though by no means stellar, fourth quarter.
Current PMI readings are broadly consistent with GDP growing at an annualised rate of just over 2%.
“There was also good news on hiring, with a slight uptick in employment growth meaning the surveys are indicating non-farm payroll growth of just over 200,000 in November.
“Both input costs and selling price inflation picked up, suggesting the upturn is feeding though to higher price pressures, though some of the manufacturing price hikes were attributable to the short-term effects of the hurricane-related supply chain disruptions.
“An upturn in new order inflows means we can expect a strong end to the year, though prospects for 2018 remain more mixed. Although expectations about the year ahead slipped lower in the service sector, future optimism hit a two-year high in manufacturing, suggesting the goods-producing sector may start to make a stronger contribution to the economy in coming months.”