The J.P. Morgan Global Services Business Activity Index, compiled in association with financial information services firm Markit, found a sizable uptick from 51.8 in October to 53.9 in November. J.P. Morgan/Markit noted the accelerated growth rate came largely from a hot rebound in services output and new growth activity in the United States, as the pace of acceleration in the euro zone lost some steam thanks to France and Italy.
The U.S. Services PMI recovered from an October performance that had been stunted by the federal government shutdown. New orders, outstanding business and backlog accumulation all increased for the month, as did service-sector employment. However, the total rate of job creation when including both manufacturing and service side jobs was at its weakest since March. Also disconcerting was that service providers’ level of optimism in November dropped to a one-year low, according to J.P. Morgan/Markit:
“More than half of all companies expected to see higher activity in the coming year…however, the survey saw a rise in the number of companies citing concerns that activity could weaken, often linked to uncertainty arising from further potential fiscal standoffs.”
J.P. Morgan/Markit also released the following November results for service sector PMI levels in other nations this week:
Brazil – 52.3 (52.1 in October)
China – 52.5 (52.6 in October)
France – 48 (50.9 in October)
Germany – 55.7 (52.9 in October)
Japan – 51.8 (55.3 in October)
Russia – 52.9 (52.5 in October)
Spain – 51.5 (49.6 in October)
-Brian Shappell, CBA, CICP, NACM staff writer
Visit http://www.nacm.org/enews.html#6 to view NACM’s eNews story this week about the latest manufacturing-side PMI data from around the globe.