US business activity improved for the second consecutive month in November, with flash PMI data indicating the fastest increase in new orders this year and a strong increase in business optimism. Reduced political concerns and hopes for policy support boosted sentiment.
Services dominated the expansion, with the highest output and new business wins of the year, while manufacturing expanded but saw significantly slower order book growth and record-high stockpiles of unsold items.
The S&P Global US Composite PMI increased to 54.8 from 54.6, its highest level since July and the 34th consecutive month of expansion.
Hiring increased modestly as employers remained cost-conscious, even as manufacturers recruited employees at a quicker rate. Input costs rose at one of the fastest rates in three years, driven by tariffs and increased wages, resulting in a rise in selling price inflation.
Outlook expectations have risen to their highest level since January, boosted by lessening political concerns, increased client inquiries, and prospects for reduced interest rates and fiscal stimulus.
