Services PMI Remains In Contraction

The November services PMI printed a touch lower than October's reading (at 48.3 vs 48.5 prior), remaining in contractionary territory for the fourth consecutive month.

• The index was pulled down by the employment component, which fell to 52.5 from 55.6. There is thus still evidence of some degree of labour hoarding amongst services firms, but momentum is declining.
• The raw-materials/input prices paid component remained at elevated levels, though fell slightly to 59.2 (vs 59.5 prior).
• The development of prices paid and employment are broadly consistent with the November Economic Tendency Indicator, with prices remaining high (albeit off local peaks) and evidence of a softening labour market continuing to be shown in survey data.
• An improvement in supplier delivery times was an upside contributor, while other components showed marginal changes.