Steady growth at a solid level is the message from the services PMI sample. November's final 54.7 compares with 54.4 at mid-month and 54.8 at the end of October. Export orders are a major plus for the sample, helping to offset noticeable slowing in domestic orders and slowing in hiring where the signal for tomorrow's employment report, like that from Challenger and jobless claims earlier this morning, is not favorable. Input costs, in part reflecting higher labor costs, continue to climb at a sharp rate with pass through to customers reported.
This is a mixed report underscored by an easing but still positive view of future business conditions. Many of November's advance indications, like domestic orders and employment in this report, have shown hints of softening compared to October. Watch for the ISM non-manufacturing report to be released at 10:00 a.m. ET.
Today's service results together with November's manufacturing PMI, which came in at 55.3, make for a PMI composite of 54.7 in November vs 54.4 in the November flash and vs 54.9 in October.