- Prior 49.5
- Composite PMI 50.7 vs 50.1 prelim
- Prior 48.7
That's a decent improvement in overall business activity, with it expanding for the first time since July. There were slight rises in new work and employment, so that's a positive. However, prices charged inflation climbs up to a four-month high. S&P Global notes that:
"UK service providers moved back into expansion mode during November as stabilising demand conditions helped to lift business activity from its recent malaise. Although only marginal, the upturn in service sector output was the fastest since July and slightly stronger than the earlier 'flash' estimate for November. Staffing numbers also returned to growth, supported by a modest improvement in business activity expectations for the year ahead.
"Despite tentative signs of a turnaround in new orders, survey respondents once again commented on a lack of willingness to spend among clients. Many firms noted that low levels of business and consumer confidence, alongside elevated borrowing costs, had constrained sales opportunities in November. Overseas markets continued to show resilience, with strengthening US demand often cited as a driver of increased new export orders.
"November data provided a note of caution with regard to the near-term inflation outlook as service providers signalled another round of strong input cost pressures, largely due to rising staff wages. Squeezed margins from higher salary payments and rising prices for essential business services in turn contributed to the fastest increase in output charges across the service economy for four months."
