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Economic Buzz: US services sector continues to expand in November
04-Dec-2025 07:25
The US private sector services economy continued to expand at a solid pace in November, despite growth softening to a five-month low. The headline S&P Global US Services PMI Business Activity Index recorded 54.1 in November, down from October's 54.8 and lower than the earlier 'flash' estimate of 55.0.

Activity was supported by the firmest rise in new work of 2025 so far, whilst confidence in the outlook strengthened following the end of the government shutdown and expectations of improved economic growth in the year ahead.

Firms also took on additional staff to a stronger degree amid some evidence of capacity pressures, but with reports of higher labor costs and tariffs continuing to push up prices in general, input cost inflation accelerated to a six-month high.

Activity was supported in November by another increase in new business volumes, which increased to the strongest degree since last December.

Confidence in the outlook ' as measured by the Future Activity Index ' improved noticeably since October. A positive outlook and higher current workloads helped to support an increase in staffing levels during November.

Meanwhile, latest prices data signaled the continuation of above trend input cost inflation, with prices overall rising to the greatest degree since May.

The S&P Global US Composite PMI posted 54.2 in November. That was little changed overall on October's 54.6 and consistent with trend growth of the US private sector economy.

Similar rates of expansion were recorded across the manufacturing and service sectors. Latest data showed the strongest growth in new work for three months, which helped support a solid increase in employment. Meanwhile, input price inflation accelerated to a four-month high whilst output charges also rose at a stronger pace.

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