Business activity in the United States increased for the second consecutive month and reached a four-month high in November, S&P Global said Friday (Nov. 21).
The company’s Flash U.S. Composite PMI Output Index rose from 54.6 in October to 54.8 in November, according to a Friday press release.
By sector, services companies reported their strongest increase in output since July and their largest increase in new business this year. Manufacturing companies reported a “robust” increase in production but a slowdown in new orders, per the release.
“The flash PMI data point to a relatively buoyant U.S. economy in November, signaling annualized GDP growth of about 2.5% so far in the fourth quarter,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in the release. “The upturn also looks encouragingly broad-based for now, with output rising across both manufacturing and the vast services economy.”
The survey also found that companies were more confident about their prospects in the year ahead than they have been since January, according to the release.
By sector, the optimism of manufacturing companies hit a five-month high, and that of services companies reached an 11-month high, per the release.
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“Hopes for further interest rate cuts and the ending of the government shutdown have boosted optimism alongside a broader undercurrent of improved economic optimism and reduced concerns over the political environment,” Williamson said in the release.
The government shutdown ended on the evening of Nov. 12 after lasting for a record-long 43 days. Following President Donald Trump’s signing of a continuing resolution to temporarily restore funding, agencies reopened and federal workers returned to their offices.
Many types of businesses were impacted during the shutdown. For example, the U.S. Chamber of Commerce said the government shutdown put at risk $3 billion a week that would have been earned by 65,500 small business contractors. In addition, the U.S. Travel Association said that the government shutdown could cost America’s travel economy $1 billion a week.
The National Federation of Independent Business said Nov. 11 that during October, small business optimism took “a small step back,” with owners reporting declines in sales and profits.
