US business activity eased moderately in November amid persistent labor shortages and delays of raw materials, leading to increased prices.
- IHS Markit’s flash US Composite PMI Output Index, which measures both the manufacturing and services sectors, dropped to a reading of 56.5 in mid-November from 57.6 in October.
- The growth rate remains above the survey’s long-term pre-pandemic average and is in line with an economy that is recovering after a temporary slump in the summer.
- The services sector contributed to the recovery in activity, with IHS Markit indicating some resistance to higher prices.
- Chris Williamson, chief business economist at IHS Markit stated that the US economy continues to run hot, but cautioned that the economy is struggling to deal with ongoing supply-chain bottlenecks.
The survey’s measure of prices paid by businesses for raw materials rose to 78.1. These higher prices are usually passed to the final consumers.
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Source: IHS Markit
