Business activity in the United States fell in November for the fifth consecutive month, with the manufacturing and service sectors registering declines according to a recent report by S&P Global.
The Flash US PMI Composite Output Index was at 46.3 in November, down from 48.2 at the beginning of the fourth quarter, according to a Nov. 23 news release by S&P. This was the “sharpest” rate of contraction since August this year and the quickest since 2009. If the level is above 50, it indicates an improvement. Low levels are indicative of a contraction. According to FX Street data, the market consensus was that the Composite PMI would fall to 47.7 in the month.
“Lower output was seen across both manufacturing and service sectors amid increasingly steep downturns in demand. The overall fall in activity was the second-fastest since May 2020 as inflation, rising borrowing costs, and economic uncertainty weighed on demand,” the release said.
The Flash US Services Business Activity Index was 46.1. This is lower than the 47.8 recorded in the previous month and below the expected level 47.9. This is the second-fastest drop in record, except for the initial pandemic phase that began in 2020.
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