| Actual | Previous | Consensus | Consensus Range | |
|---|---|---|---|---|
| Composite Index | 50.7 | 50.7 | ||
| Services Index | 50.8 | 50.6 | 50.8 | 50.8 to 50.8 |
Highlights
Only a bit better than flat is the PMI services final for November, at 50.8 versus 50.6 in October and the 4th 50-handle in a row. New orders are likewise barely growing though the sample is reporting better business from Europe.
The sample slowed hiring in the month to a near halt though output did rise, at the cost however of backlogs which fell for a fifth straight month.
Input costs eased for a third straight month to a three-year low despite continued increases for wages. The sample successfully raised prices for the best increase since June.
A final note is a dip in confidence to the lowest level of optimism for the whole of 2023. Watch for the ISM services index at the top of the hour; Econoday's consensus is calling for a slight uptick to a modest-to-moderate 52.4.
The sample slowed hiring in the month to a near halt though output did rise, at the cost however of backlogs which fell for a fifth straight month.
Input costs eased for a third straight month to a three-year low despite continued increases for wages. The sample successfully raised prices for the best increase since June.
A final note is a dip in confidence to the lowest level of optimism for the whole of 2023. Watch for the ISM services index at the top of the hour; Econoday's consensus is calling for a slight uptick to a modest-to-moderate 52.4.
Market Consensus Before Announcement
No change at the mid-month's 50.8 is the call for the PMI service's November final.
Definition
US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.
Description
Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.
The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.
The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.
