Service sector activity slowed in November.
Markit’s latest services PMI reading came in at 56.2, just below expectations and the flash reading, but indicating steady expansion in the services sector.
Expectations were for the reading to come in at 56.5, up slightly from the preliminary 56.3 reading seen earlier this month.
The flash reading showed activity in the service sector expanded at its slowest pace since April.
Wednesday’s report showed that output and new business volumes in the services sector expanded at the slowest pace in seven months, but payroll increases and the rate of job creation accelerated in November.
Commenting on the report, Markit’s Chris Williamson said, “The final PMI data confirm earlier flash readings that the US economy is likely to have slowed further in the fourth quarter … The concern is that, with new business across manufacturing and services collectively growing at a much reduced rate compared to the summer months, companies could become more hesitant in taking on staff unless demand picks up soon again.”
Williamson added that, “However, at present, the slowing is still only modest, and leaves the economy growing at its approximate long-term trend rate.”
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