Strong PMI details as output and consumer demand remain solid

PMI data a little better than expected for services and composite and almost a point better than expected for manufacturing. Looking through the report there are strong details in here with output and consumer demand looking good.

• Market reaction rather subdued given only a small upward surprise to the data.
• Highlights from the press release:
• Input prices at highest pace of increase since January 1998 "driven by higher wages and a spike in prices paid for fuel, energy and raw materials"
• "Exceptionally strong cost pressures meant that prices charged by manufacturers increased at the steepest rate since the index began 20 years ago. However, service providers indicated a slight slowdown in output charge inflation to its lowest for three months, with some citing greater resistance to higher selling prices among clients."
• "Customer demand continued to rise sharply in November, despite the pass through of higher costs to clients, with the overall rate of new order growth accelerating to a five-month high."
• "Service providers reported a faster recovery in new work than goods producers. Subdued momentum in the manufacturing sector again reflected constraints on growth due to the global supply chain crisis. "
• "Strong customer demand and increased backlogs of work contributed to another marked rise in private sector employment during November. Staffing numbers have now picked up in each of the past nine months, although the latest increase was the slowest since April. Survey respondents widely noted that recruitment difficulties and unexpected staff departures for higher wages or lifestyle changes had constrained employment growth."