Multi Year High For U.S. PMIs As Employment And Prices Soar

IHS Markit notes that November's preliminary U.S. PMI data showed the fastest overall expansion for more than 5.5 years (since March 2015), with the composite rising to 57.9 from 56.3 in October (and manufacturing and services both accelerating). The survey showed a record increase in both employment and prices.

• The record in output prices (record high in services, 25-month high in manufacturing) was due to "the improving demand environment". But the report notes that the rise in output prices (services at record high, manufacturers' highest in over 2 years) is "in part linked to a record incidence of supply chain delays" which were at a record high in the survey's 11-year history.
• Monthly employment rise was the highest since the beginning of the survey (2009), particularly among service providers.
• There was a sharp increase in new orders (fastest since Jun 2018). Total orders largely driven by domestic demand.
• Highest optimism for the year ahead since May 2014, on the back of both COVID vaccine hopes and the end of election uncertainty.