- Chris Williamson, chief economist at Markit
Business activity in the American services sector rose this month at a slower pace than in October as growth in new business slowed. According to the financial data provider Markit, flash services PMI came in at 56.3 in November, the lowest level since April, following final October's reading of 57.1. The growth rate has moderated steadily since hitting this year-high at 61 in June, but is still above the 50-mark threshold that indicates expansion in economic activity. The services sector new business sub-index dropped to 55.9 compared with the final 57.8 reading in last month. The employment sub-component, however, showed strength coming in at the highest level compared to final readings since June.
Markit's flash composite PMI, a weighted average of manufacturing and services indexes, declined to 56.1 in November, down from 57.2 in October, with the employment sub-index also improving. In a separate report from November 20, Markit said that manufacturing activity across the country in November expanded at the slowest pace in ten months, sapping optimism over the resilience of the world's number one economy. The preliminary manufacturing PMI dropped to a seasonally adjusted 54.7 this month down from a final reading of 55.9 in October. Analysts, however, had expected the index to rise to 56.3 in November.
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