The numbers: The U.S. economy expanded but at a relatively subdued pace in early November, latest data from S&P Global show.
The S&P Global “flash” U.S. services index rose to 50.8 in November from 50.6 in the prior month, the highest level in four months. Economists surveyed by the Wall Street Journal had forecast a reading of 50.2.
On the other hand, the S&P Global “flash” U.S. manufacturing index, meanwhile, slid to 49.4 from 50, a three-month low. Economists had expected a 50.2 reading.
Readings above 50 signifies expansion; below that, contraction.
Key details: Both service providers and goods producers reduced employment in November for the first time since June 2020.
Total new orders returned to growth.
Cost pressures softened further in early November, with input prices rising at the slowest pace in just over three years.
Big picture: U.S. economic growth is moderating from the blowout 4.9% annual growth rate in the third quarter. There is a debate about whether the economy will just cool down or stall out. Recession worries have returned, with the focus mainly focus on the health of the consumer.
What S&P Global said: “The U.S. private sector remained in expansionary territory in November, as firms signaled another marginal rise in
business activity. The upturn was historically subdued, however, amid
challenges securing orders as customers remained concerned about global economic uncertainty,” said Siân Jones, principal economist at S&P Global Market Intelligences.
Market reaction: U.S. stocks
DJIA
SPX
were higher in light post-holiday trading. The 10-year Treasury note yield
BX:TMUBMUSD10Y
rose to 4.47%.
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