Costs and output charges increased; output contraction slower than last month

• 0.9 point positive surprise to manufacturing, 0.2 point positive surprise to services.

Highlights from the press release:

• "On the price front, November saw faster increases in both input costs and output charges, with inflationary pressure remaining centred on the service sector."
• "November saw the rate of inflation in average charges for goods and services tick up from October’s 32- month low, taking it back above its long-run average. As well as a slightly faster rise in service sector output prices, there was also a reduced drag from falling factory gate charges, which posted the slowest decline for five months. Overall input costs likewise increased at a faster rate in November, although this was driven exclusively by a sharp and accelerated rise in service sector operating expenses – the quickest for five months – as manufacturing purchasing costs posted the steepest fall since August. "
• "The downturn in manufacturing production also eased, with the rate of contraction slowing notably from the previous survey period to the weakest since May (although it was still marked overall)."
• "Weighing on activity in November was a sustained decline in demand for goods and services, with surveyed firms highlighting the influence of market uncertainty, tightened financial conditions and customers’ efforts to destock. Total inflows of new work decreased solidly and for the seventh month in a row in November. That said, the rate of decline was the weakest since June, reflecting softer reductions in both monitored sectors. New export business likewise fell at a slower pace."