- Markit Manufacturing PMI continued to edge higher in November.
- Business activity in the service sector expanded at an impressive pace.
- US Dollar Index recovered from daily lows on the upbeat PMI data.
The IHS Markit’s Manufacturing Purchasing Managers’ Index (PMI) for the US edged higher to 56.7 in November from 53.4 in October to show that the economic activity in the manufacturing sector continued to expand at a robust pace. This reading beat the market expectation of 53 by a wide margin.
Furthermore, the Services PMI rose to 57.7 from 56.9 and surpassed the analysts’ estimate of 55.3.
Commenting on the report, “the November PMI surveys provide the first postelection snapshot of the US economy and makes for very encouraging reading, though stronger economic growth is quite literally coming at a price,” said Chris Williamson, Chief Business Economist at IHS Markit.
“Expectations about the year ahead have surged to the most optimistic for over six years,” Williamson further noted. “Reflecting the combination of a post-election lift to confidence and encouraging news that vaccines may allow a return to more normal business conditions in the not too distant future.”
Market reaction
The US Dollar Index rebounded from daily lows after the upbeat report and was last seen losing 0.15% on the day at 92.22.
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