Mixed PMIs Slightly Stronger Than Expected On Balance

• The preliminary November US PMIs from S&P Global were mixed across the board but a beat for services helped drive surprise, but still very moderate, strength in overall activity.
• The manufacturing PMI fell more than expected to 49.4 (cons 49.9) from 50.0.
• The services PMI surprisingly increased marginally to 50.8 (cons 50.3) from 50.6.
• The composite PMI was stronger than expected as it held put at 50.7 (cons 50.4).

Select excerpts from the press release:

• “Total new orders returned to growth, thereby ending a three-month sequence of contraction. That said, demand conditions at manufacturers were unchanged on the month.”
• First cut in headcount since Jun’20: “Relatively subdued demand conditions and dwindling backlogs led firms to cut their workforce numbers for the first time since June 2020, as service providers joined goods producers in reducing headcounts.”
• Cooling input prices, higher service selling prices: “Cost pressures softened further, with input prices rising at the slowest pace in just over three years. Higher service sector output charges pushed up the rate of total selling price inflation, with manufacturers seeing a slower increase in factory gate charges in November.”