PMI Index Reports Show Modest Growth

Very close together along a shallow upward slope is the modest but still constructive indication from November's set of flash PMIs, led by a 6 tenth gain for manufacturing to a better-than-expected 52.2. Manufacturing the last several reports has been slightly ahead of services which also rose, up 5 tenths to 51.6 which is also better than expected. This is the best combined showing since April when these indexes began to flatten at the breakeven 50 line.

New orders for the manufacturing sample were also the best since April. After two months of cutting, this sample is adding workers this month in a positive indication for next week's employment report that, however, is offset by only marginal job creation in the services sample. Yet a positive for the jobs outlook, at least for these samples, is the first combined rise in backlogs since July.

However much this month's improvement is welcome, it comes against very easy comparisons that have been nearly dead flat the past six months. This is reflected in prices which are "historically subdued" according to the report with increases in selling prices described as "muted".