Just days after Markit reported a surprising upward impulse for the US manufacturing sector under President-elect Donald Trump, moments ago we learned that the US service industry declined in the month of November. As Markit notes, “the November PMI surveys provide the first snapshot of US business conditions in the wake of the surprise election result, and show a reassuring picture of sustained solid economic expansion and hiring."
New business improved at the fastest rate in a year but job creation remains flat (the rate of staff hiring was only modest in November and remained weaker than the average seen since the jobs rebound began in early-2010) as growth prospects fell slightly MoM.
Pick your poison...
As Markit details,
“The November PMI surveys provide the first snapshot of US business conditions in the wake of the surprise election result, and show a reassuring picture of sustained solid economic expansion and hiring.
"With businesses in the vast service sector also showing improved confidence about the year ahead as election uncertainty cleared, the surveys give a clear green light for the Fed to hike interest rates in December.
“Business activity across both manufacturing and services is growing at a rate unchanged on October, which was in turn the fastest for a year. Together, the two PMI surveys indicate that the economy is expanding at a respectable annualized rate of 2.5% in the fourth quarter.
“Hiring also continued at a solid pace, with the survey’s employment indicators consistent with non-farm payrolls rising by 135,000 in November.”