Purchasing Managers’ Index – Services, November 2014
Services PMI dropped to 56.9 in November: Strong underlying demand
- The purchasing managers’ index for the services sector (Services PMI) dropped from 57.6 in October to 56.9 in November. This was largely due to the sub-indices for business activity and employment, which reduced Services PMI by 0.8 and 0.3 points, respectively. The other two – the sub-indices for supplier delivery times and new orders – made positive contributions to Services PMI.
- The sub-index for new orders landed above the 60 mark for the fifth month this year. At the same time, order backlogs, employment and supplier delivery times continued to rise, which could be a sign of strong demand. The fact that prices for intermediate goods have been on an upward-sloping trend in the short-run could imply that the favorable development has reached suppliers too.
- The employment sub-index dropped by 1.6 points, to 54.6. Despite the lower rate of employment growth in November, the need for staffing has increased for nearly 1.5 years. According to the index for planned business activity, which landed at 70.2 in November, service companies remain optimistic.
- The index for suppliers’ intermediate goods prices rose by 3.5 points, to 57.7, in November – its highest level since June 2011. Prices have risen in nine out of eleven months this year.
PMI - Services, November 2014