S&P Global survey: November business activity in the US remained stable.

Although private sector employment fell in November for the very first time in nearly three and a half years, U.S. company activity remained stable, which was expected given the forecast for a fourth-quarter economic slowdown.

The services and manufacturing industries are tracked by S&P Global’s flash U.S. Composite PMI the output Index, which is which remained stable at 50.7 this month due to a slight increase in services sector activities offsetting a decline in manufacturing, the company said on Friday. An increase in the earnings of private companies is indicated by a rating above 50.
The flash manufacturing PMI for the survey fell from 50.0 in October to 49.4 this month. This month, the flash service industry PMI increased marginally from 50.6 to 50.8.

As anticipated given the projection for a fourth-quarter contraction in the economy, U.S. corporate activity remained consistent even as employment in the private sector fell in the month of November for the first time in almost three years and a half.

S&P Global’s flash U.S. Composites PMI, an output index that tracks both the manufacturing and services sectors, was steady at 50.7 this month, the company reported on Friday, with a small uptick in services sector activity balancing a fall in manufacturing. A grade higher than 50 indicates that private enterprises’ earnings have increased.
The survey’s flash manufacturing PMI decreased this month from 50.0 in October to 49.4. The sudden service industry PMI went from 50.6 to 50.8 this month, a little improvement.

In the third quarter, the economy expanded at an annualized rate of 4.9%. The majority of growth projections for the October–December quarter are below a 2% rate.

In November, the flash composites new orders index rose to 50.4, reversing three months of downward trend. The services sector led the little increase from a score of 49.0 in October, while industrial orders remained unchanged.

Businesses cut staff as a result of the weak order growth; the employment index in the poll fell to 49.7. This was the first decline since June 2020, and it came after an October reading of 51.3.