Prior 49.5Composite PMI 50.7 vs 50.1 prelimPrior 48.7That's a decent improvement in overall business activity, with it expanding for the first time si
- Prior 49.5
- Composite PMI 50.7 vs 50.1 prelim
- Prior 48.7
That’s a decent improvement in overall business activity, with it expanding for the first time since July. There were slight rises in new work and employment, so that’s a positive. However, prices charged inflation climbs up to a four-month high. S&P Global notes that:
“UK service providers moved back into expansion mode
during November as stabilising demand conditions
helped to lift business activity from its recent malaise.
Although only marginal, the upturn in service sector
output was the fastest since July and slightly stronger
than the earlier ‘flash’ estimate for November. Staffing
numbers also returned to growth, supported by a
modest improvement in business activity expectations
for the year ahead.
“Despite tentative signs of a turnaround in new orders,
survey respondents once again commented on a lack of
willingness to spend among clients. Many firms noted
that low levels of business and consumer confidence,
alongside elevated borrowing costs, had constrained
sales opportunities in November. Overseas markets
continued to show resilience, with strengthening US
demand often cited as a driver of increased new export
orders.
“November data provided a note of caution with regard
to the near-term inflation outlook as service providers
signalled another round of strong input cost pressures,
largely due to rising staff wages. Squeezed margins from
higher salary payments and rising prices for essential
business services in turn contributed to the fastest
increase in output charges across the service economy
for four months.”
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