US business activity held firm in November, with the PMI Composite edging up from 54.6 to 54.8. The manufacturing index slipped from 52.5 to 51.9, while services climbed from 54.8 to 55.0. According to S&P Global’s Chris Williamson, the readings point to a “relatively buoyant” economy tracking around 2.5% annualized GDP growth so far in Q4, with the upturn “encouragingly broad-based”.
Business confidence has also improved meaningfully, helped by expectations of further Fed rate cuts and relief following the reopening of the federal government. Williamson noted that optimism for the year ahead has strengthened as uncertainty surrounding policy and political risks recedes. Hiring continued in November, though firms remained cautious as tariffs and higher operating costs restrained labor demand.
Still, the PMI report highlighted pockets of concern. Manufacturers saw slower new orders growth while reporting a record rise in finished goods inventories. Price pressures also re-accelerated: both input costs and selling prices rose at faster rates, keeping the inflation debate alive within the Fed.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://www.actionforex.com/live-comments/620113-us-pmi-composite-rises-to-54-8-solid-q4-momentum-but-inflation-pressures-re-emerge/&media=https://www.actionforex.com/wp-content/uploads/featured-images/f-usa4.jpg&description=US business activity held firm in November, with the PMI Composite edging up from 54.6 to 54.8. The manufacturing index slipped from 52.5 to 51.9, while services climbed from 54.8 to 55.0. According to S&P Global’s Chris Williamson, the readings point to a “relatively buoyant” economy tracking around 2.5% annualized GDP growth so far in Q4, with the upturn "encouragingly broad-based".){kind=link}