US services sector activity unchanged in November

Economy 12/6/2018, 3:51 PM
US services sector activity unchanged in November

The growth of the services sector in the United States remained little changed in November compared to the previous month, according to a report published by IHS Markit on Thursday. The seasonally adjusted final US Services Business Activity Index registered 54.7 in November, in line with 54.8 recorded in October. The maintained rise in business activity was attributed to a sustained rise in new business and robust client demand. However, workforce numbers expanded at the weakest rise since June 2017.

At the same time, the US Composite Output Index in November stood at 54.7, slightly down from October's 54.9 figure. The upturn in new orders weakened to its slowest since October 2017, but the overall expansion in the US private sector was still strong despite slower rates of growth in both manufacturing and services.

"Although some cooling in the rate of job creation was seen in November, the surveys are still pointing to payrolls growing at monthly rate of around 185,000," Chris Williamson, Chief Business Economist at IHS Markit said. "However, while new business growth remained encouragingly resilient, it has eased to the lowest in over a year as demand showed some signs of softening, linked partly to growing concerns over trade wars, slower global demand growth, rising political uncertainty and tighter financial conditions."

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