PT Solid Gold Berjangka | U.S. Business Activity Steady in November – S&P Global Survey
Ekonomi AS Flash Services PMI Flash Manufacturing PMI (US)
Solid Gold Berjangka | It appears that the U.S. business activity remained stable in November, but there are indications of a slowdown, especially in terms of employment in the private sector. The decline in private sector employment is notable as it is the first time in almost three-and-a-half years.
The S&P Global Composite PMI Output Index, which tracks manufacturing and services sectors, remained unchanged at 50.7, indicating overall stability. However, the manufacturing PMI contracted to 49.4 from 50.0 in October, while the services sector PMI edged up slightly to 50.8.
Economists are anticipating a moderation in overall economic activity in the fourth quarter, attributed in part to the impact of higher interest rates implemented by the Federal Reserve since March 2022. The Fed’s policy rate has been raised by 525 basis points to the current range of 5.25%-5.50%.
The flash composite new orders index showed a modest increase to 50.4 in November, breaking a three-month declining trend. However, this improvement was mainly driven by the services sector, with factory orders remaining stagnant.
The employment index in the survey dropped to 49.7, marking the first contraction since June 2020. Businesses cited relatively muted demand conditions and elevated cost pressures as reasons for layoffs, affecting both manufacturing and services sectors. Some companies were also implementing hiring freezes.
The data suggests that businesses are responding to the current economic conditions by adjusting their workforce in response to challenges such as subdued demand and increased costs.
It’s important to note that economic conditions and data can change, so keeping an eye on subsequent reports will provide a more comprehensive understanding of the evolving economic landscape.