Business activity in November grew at a slower rate than last month and business confidence fell while new orders and employment both increased.
The IHS Markit U.S. Services Business Activity Index came in at 54.5 for last month, down from its October reading of 55.3.
Average prices charged for services rose and business pushed higher input costs onto their clients, IHS Markit said. Business is expanding when the reading is above 50.
Economists polled by The Wall Street Journal were expecting 55.1.
The firm’s U.S. Composite Purchasing Managers’ Output Index was 54.5, down from October’s reading of 55.2. Private-sector activity grew its slowest since June, IHS Markit said.
Chris Williamson, IHS Markit’s chief business economist, said the PMI surveys’ results signal “a modest cooling in the overall rate of business growth.”
Businesses were also not as positive about the year ahead, he said, but currently they are still “in expansion mode.”
“The upturn shows few signs of losing momentum to any significant extent,” he said.
Source: Dow Jones