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Business activity in the US service sector continued to contract in November, according to data released on Monday by S&P Global.
The seasonally adjusted S&P Global US Services PMI Business Activity Index registered 46.2 in November, compared to 47.8 in October. At below the 50.0 no-change mark, the score shows the sector remains in contraction.
This was broadly in-line with the earlier flash estimate and FXStreet-cited consensus of 46.1.
The fall in business activity was largely linked to lower new orders and subdued client demand. The rate of contraction was the fastest since August and amongst the sharpest on record, according to S&P Global.
‘The survey data are providing a timely signal that the health of the US economy is deteriorating at a marked rate, with malaise spreading across the economy to encompass both manufacturing and services in November,’ said Chris Williamson, chief business economist at S&P Global Market Intelligence.
‘There are some small pockets of resilience, notably in the tech and healthcare sectors, but other sectors are reporting falling output amid the rising cost of living, higher interest rates, weaker global demand and reduced confidence. Struggling most of all it’s the financial services sector, though consumer facing service providers are also seeing a steep fall in demand as households tighten their budgets’ Williamson continued.
The S&P Global US Composite PMI output index posted 46.4 in November, compared to 48.2 in October. This signalled a solid decline in US private sector business activity and came slightly above FXStreet-cited consensus of 46.3.
The fall in output was driven by a faster decrease in service sector activity and a renewed downturn in manufacturing production. Private sector client demand also weakened during November.
The S&P Global US Services PMI is complied from responses to questionnaires sent to a panel of around 400 service sector companies. Data were collected between November 11 and 25.
By Heather Rydings, Alliance News senior economics reporter
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