US services sector still robust in November

Markit’s flash US services purchasing managers’ index printed at 54.7 in November, down a touch from October’s 54.8, but still the second-strongest reading in the past 12 months.

Adjusted for seasonal influences, the flash US composite PMI output index was unchanged from October at 54.9, which was an 11-month high.

The index has registered above the neutral 50.0 threshold in each month since March, and the latest reading signalled that private sector output growth was broadly in line with the post-crisis trend of 55.3.

Chris Williamson, chief business economist at IHS Markit, said: “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.”