US DATA: Flash PMIs Point To Faster Growth and Input Cost Inflation

The S&P Global US PMIs were on balance stronger than expected in the flash November release, led by services increasing slightly whilst manufacturing fell a little more than expected. Overall activity saw the largest rise in new business seen so far this year whilst selling prices reaccelerated on the back of one of the fastest rates of input cost inflation in the past three years. Composite output price inflation however is still lower than earlier this year. 

• S&P Global US manufacturing PMI: 51.9 (cons 52.0) after 52.5 in October
• S&P Global US services PMI: 55.0 (cons 54.6) after 54.8 in October
• S&P Global US composite PMI: 54.8 (cons 54.5) after 54.6 in October

PMI highlights from the press release (link):

• "US business activity growth accelerated for a second successive month in November, according to early ‘flash’ PMI data, accompanied by the largest rise in new business seen so far this year. Confidence in the year ahead outlook also improved markedly, notably reflecting reduced worries over the political environment and hopes for increased policy support to business."
• "The improvement was led by the service sector, accompanied by a robust rise in manufacturing output. However, the factory sector also reported a marked slowing in order book growth alongside an unprecedented buildup of unsold stock."
• "The pace of job creation meanwhile remained only modest, due principally to cost concerns. Input costs rose at one of the fastest rates seen over the past three years, driving a reacceleration of selling price inflation. Higher costs and prices were again commonly attributed to tariffs."