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US Services PMI Missed the Expectation for November

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US Services PMI in November

The November US Services PMI (Purchasing Managers’ Index) indicates a weaker improvement than October in services activity in the United States (QQQ) (SPY). The index stood at 54.5 in November compared to 55.3 in October. It also missed the preliminary market expectation of 54.7.

The US Services PMI has shown a gradual improvement over the past months. However, in November, it fell marginally. Let’s look at some of the key factors in November:

  • Production output and volume improved at a slower rate in November.
  • New order growth showed weaker expansion in November.
  • Export orders improved at a slower rate in November than in October.
  • Employment in the services sector rose in November.

The business confidence index showed some marginal fall in November. Less international demand was the main factor that hampered the performance of the services industry that month. Strong expectations for the passage of the tax reform bill mainly drove market movement in November.

ETF performance in November

The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index (SPX-INDEX), rose 3.1% in November 2017. The PowerShares QQQ ETF (QQQ), which tracks the performances of major US technology stocks (COMP-INDEX), rose 2% that month. Strong improvement in ETFs could be signaling an overall optimistic investor sentiment.

In the next part, let’s look at the Germany Services PMI for November 2017.

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