| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Composite Index | 54.8 | 54.8 to 54.8 | 54.2 | 54.6 |
| Services Index | 55.0 | 55.0 to 55.0 | 54.1 | 54.8 |
Highlights
Growth in services slipped a bit to a five-month low in the final November report. The services PMI came in at 54.1 versus 54.8 in the October final and 55.0 in the November flash. The Econoday consensus looked for no change in the final from the 55.0 flash.
The composite index, which includes manufacturing, came in at 54.2 in the November final, down from 54.6 in the October final and 54.8 in the November flash. The consensus anticipated no revision from the flash.
Despite the marginally lower than expected results, the figures show ongoing solid growth, well above the 50 index level indicating no change from the prior month.
For services, the S&P report highlighted the best increase in new orders since December 2024, with respondents citing more favorable market conditions and stronger underlying demand for services. Exports also improved, although growth
was marginal and lagged noticeably behind overall new work.
The composite index, which includes manufacturing, came in at 54.2 in the November final, down from 54.6 in the October final and 54.8 in the November flash. The consensus anticipated no revision from the flash.
Despite the marginally lower than expected results, the figures show ongoing solid growth, well above the 50 index level indicating no change from the prior month.
For services, the S&P report highlighted the best increase in new orders since December 2024, with respondents citing more favorable market conditions and stronger underlying demand for services. Exports also improved, although growth
was marginal and lagged noticeably behind overall new work.
Market Consensus Before Announcement
No revision expected from the flash with the composite at 54.8 and services at 55.0.
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.
