US services sector reaches seven-month high in November

The US services sector expanded at the fastest pace in seven months in November, a widely followed survey showed on Wednesday.

Markit said its 'flash' estimate of the purchasing managers' index for the US services sector, saw the index rise from 54.8 in October to 56.1 in November, marking the sharpest rate of growth since April and beating analysts' expectations for a 55.1 reading.

The index was also above the 55.8 average seen since the survey began six years ago and marked the 25th consecutive month of expansion for the services sector in the world's largest economy.

Service providers recorded a solid increase in their payroll numbers during November, which continued the upward trend seen since early-2010, while the rate of job creation edged higher from October, but remained weaker than the average recorded in 2015 so far.

Service sector companies were upbeat overall about their prospects for growth over the next 12 months. atlhough the degree of positive sentiment remained subdued in comparison to the post-crisis average.

Meanwhile, the Markit flash US composite PMI output index rose to 56.1 in November, up from 55.0 in the previous month
and the highest reading since April.

“The US economy is showing further robust economic growth in the fourth quarter, with the pace of expansion picking up in November," said Markit's chief economist Chris Williamson.

“The faster pace of growth and healthy hiring trend were accompanied by the sharpest rise in average selling prices seen for four months, providing a triple-boost to the chances of the Fed hiking interest rates at its next meeting.”