The
latest report by IHS Markit revealed on Friday the seasonally adjusted final
IHS Markit U.S. Services Business Activity Index (PMI) came in at 58.0 in November,
down from 58.7 in October but slightly above the earlier released “flash”
estimate of 57.0. Although the pace of growth
was faster than the series average, it was muted in comparison to the ones seen
this year so far.
Economists
had forecast the index to stay unrevised at 57.0.
According
to the report, a modest decrease in the services PMI reflected impacts of supply
and labor issues. The new business saw solid growth, with the rate of increase
holding close to October’s three-month high. Employment rose at the fastest
pace since June, despite the fact that services providers continued to struggle to work
through backlogs of work, which rose at the second-quickest pace on record. On
the price front, the rate of input price inflation accelerated to the highest
since May and the second-sharpest on record, while the pace of increase in
selling prices dropped slightly, easing from October's series record, but
remained significant overall.