U.S. PMI Composite Flash slides deeper into contraction in November

LeoPatrizi

November S&P Global U.S. PMI Composite: 46.3 vs. 48.2 prior. The rate of contraction was the sharpest since August and among the fastest since the aftermath of the Great Recession given a steep downturn in demand.

New orders, a popular gauge for demand conditions across the private sector, fell in November at the quickest pace since the initial pandemic wave in May 2020, S&P Global said, as inflation and rising interest rates continued to weigh.

Services PMI: 46.1 vs. 47.9 expected and 47.8 prior.

Manufacturing PMI: 47.6 vs. 50.0 expected and 50.4 prior.

On a brighter note, “While the reduced supply chain stress is partly a symptom of lower demand, the alleviation of supply delays removes a key driver of inflationary pressures and has helped moderate the overall rate of input cost inflation to a near two-year low," said Chris Williamson, chief business economist at S&P Global Market Intelligence.

“In this environment, inflationary pressures should continue to cool in the months ahead, potentially markedly, but the economy meanwhile continues to head deeper into a likely recession,” he added.

Previously, (Nov. 3) U.S. PMI Composite slides less than expected in final October reading.