USA: Purchasing Managers Index November - Growth in services, contraction in manufacturing

USA: Purchasing Managers Index November - Growth in services, contraction in manufacturing

According to a report by finanzmarktwelt.de, the Purchasing Managers' Index for the USA (S&P Global PMI for November) has been published - one of the best indicators of the US economy. The overall index is at 50.7, which is a three-month high and above the important 50-point threshold. This indicates economic growth. The index for services is 50.8 and for manufacturing it is 49.4.

The data shows that the US continued to experience marginal expansion in output, but overall expansion rates were only modest. Despite a renewed increase in activity among manufacturers and service providers, total orders returned to growth, ending a three-month period of decline. Nevertheless, subdued demand conditions and shrinking order backlogs led companies to cut jobs for the first time in just over three years. Additionally, cost pressures have continued to ease as input prices have increased more slowly in just over three years.

This data suggests that the U.S. economy is stagnating and that unemployment rates are rising as companies cut jobs. This decline in employment and subdued demand could have a negative impact on the labor market and economic growth. It is therefore important to monitor how the economy develops over the next few months to assess any potential impact on the market and the financial industry.