US S&P Global final November services PMI 46.2 vs 46.1 prelim


  • The final look at November services from S&P Global
Adam Button

Adam Button

Monday, 05/12/2022 | 14:45 GMT-0

05/12/2022 | 14:45 GMT-0

  • Prelim was 46.1
  • Prior was 47.8
  • Composite index 46.4 vs 46.3 prelim (48.2 prior)
  • Subdued client demand led to a strong decline in backlogs of work

The ISM services data is due at the top of the hour.

The commentary in this report isn’t pretty:

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

“The survey data are providing a timely signal that the health of the US economy is deteriorating at a marked rate, with malaise spreading across the economy to encompass both manufacturing and services in November. The survey data are broadly consistent with the US economy contracting in the fourth quarter at an annualized rate of approximately 1%, with the decline gathering momentum as we head towards the end of the year.

“There are some small pockets of resilience, notably in the tech and healthcare sectors, but other sectors are reporting falling output amid the rising cost of living, higher interest rates, weaker global demand and reduced confidence. Struggling most of all is the financial services sector, though consumer facing service providers are also seeing a steep fall in demand as households tighten their budgets.

“A striking development is the extent to which companies are increasingly reporting a shift towards discounting in order to help stimulate sales, which augurs well for inflation to continue to retrench in the coming months, potentially quite significantly.”

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