PMI: "Renewed signs of sticky inflation"

• Decent PMI beat: 1.0 points on services (back above 50) and 1.7 points on manufacturing.

Highlights from press release:

• "There were renewed signs of sticky inflation in November as both input costs and average prices charged increased at faster rates than in October. Service providers reported the sharpest rise in their average charges since July, which was overwhelmingly linked to higher staff costs."
• "On the inflation front, overall cost pressures across the private sector economy remained much softer than seen in the third quarter of 2023. However, the rate of input price inflation accelerated slightly from October’s 33-month low. Strong wage inflation and the need to pass on higher fuel costs to customers continued to push up average prices charged in November. The overall rate of output charge inflation was the strongest for four months, largely due to a robust and accelerated increase in the service economy."
• "November data indicated a stabilisation of UK private sector output, following marginal reductions in each of the previous three months. This was supported by a return to business activity expansion in the service economy, alongside a softer downturn in manufacturing production. However, total new order intakes decreased for the fifth month running, which suggested that subdued underlying demand conditions persisted."