U.S. Business Activity Indicator Reaches Highest Level in 31 Months in November

Forex - The U.S. business activity measure rose to its highest level in 31 months in November on hopes for lower interest rates and more business-friendly policies under newly elected President Donald Trump.

S&P Global announced today that the U.S. Composite PMI Output Index, which tracks both manufacturing and services sectors, increased to 55.3 this month. This is the highest level seen since April 2022, following the October reading of 54.1.

The PMI figure indicated that economic growth is likely to have accelerated in the fourth quarter. However, concrete economic data such as retail sales shows that the economy has maintained a solid growth rate this quarter amidst weakness in the housing sector and stagnation in manufacturing.

Chris Williamson, chief business economist at S&P Global Market Intelligence, stated, “The increase in the headline PMI suggests that economic growth is accelerating in the fourth quarter. Lower interest rates and the new administration's more business-friendly approach have boosted optimism, helping to drive increases in production and order intake in November.”

The preliminary manufacturing PMI rose to 48.8 from last month’s level of 48.5. The results aligned with economists' expectations. The preliminary services PMI surged to 57.0 from 55.0 in October, marking the highest value since March 2022, and significantly exceeding economists' expectation of a 55.2 reading.