Services PMI Very Solid For November

The services PMI finishes November at a very solid 56.1, down 4 tenths from the mid-month flash but up a strong 1.3 points from October. November is the best full-month showing for this index since August and reflects strength across both business and consumer customers. The report describes new orders as "robust" and "accelerating" and the best since July, which is good news for the U.S. economy where manufacturing, which is directly exposed to the global economy, has been weak. Hiring in the services sample is described as "sustained" though still weaker than the year-to-date average. The outlook is upbeat but a little less so than prior months with some respondents citing uncertainty tied to the interest rate outlook. In a plus, the report also cites strength tied to reduced pressures on household budgets, a reference to low gasoline prices.