24-Nov-2025 08:40

US business activity growth accelerated for a second successive month in November, accompanied by the largest rise in new business seen so far this year. Confidence in the year ahead outlook also improved markedly, notably reflecting reduced worries over the political environment and hopes for increased policy support to business.

The improvement was led by the service sector, accompanied by a robust rise in manufacturing output. However, the factory sector also reported a marked slowing in order book growth alongside an unprecedented buildup of unsold stock.

The pace of job creation meanwhile remained only modest, due principally to cost concerns. Input costs rose at one of the fastest rates seen over the past three years, driving a reacceleration of selling price inflation. Higher costs and prices were again commonly attributed to tariffs.

The headline S&P Global US PMI Composite Output Index rose for a second successive month in November, up from 54.6 in October to 54.8, according to the 'flash' reading.

The service sector continued to lead the upturn, reporting its strongest output gain since July and the largest rise in new business so far this year.

Improved service sector growth was accompanied by a further robust increase in manufacturing production. Although slowing marginally since November, the sustained expansion over the past six months continues to represent on average the best spell for goods production growth since early 2022.

That said, a marked slowdown in factory new order gains, in part reflective of a fifth successive monthly fall in export orders, poses downside risks to production in December.

The S&P Global US Manufacturing PMI fell from 52.5 in October to a four-month low of 51.9 in November but still signalled an improvement in factory business conditions for the tenth time in the past 11 months (only July saw a marginal deterioration).

Production growth dipped slightly but remained solid by recent standards, and employment rose at the fastest rate since August.

However, new order book growth weakened from October's strong reading and therefore weighed on the PMI. In contrast, a greater lengthening of lead times acted as a stronger positive influence. Inventories of inputs were meanwhile largely unchanged

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