US Services Expand in November While Manufacturing Contracts for Ninth Month

November PMI data paints a divided picture for the US economy. Services held up with growth across ISM and S&P Global surveys, but manufacturing slipped further into contraction according to ISM.

Services Sector Shows Mixed but Positive Signals

ISM’s services PMI climbed to 52.6 in November from 52.4 in October, a nine-month high per Bloomberg, beating expectations of 52.0, ZeroHedge reports. S&P Global’s services PMI dipped slightly to 54.1 from 54.8, missing its own flash estimate of 55.0 but still signaling expansion.

The overall S&P Global composite PMI came in at 54.2, down just a touch from October’s 54.6. Details diverged: ISM saw prices paid drop and new orders fall, with employment contracting. S&P reported the opposite—prices up, new orders improving, and solid job gains.

Chris Williamson at S&P Global called it “strong expansion,” with demand rising at the fastest pace this year and GDP growth around 2.5% annualized for Q4.
Financial services surged, but tariff worries and affordability issues hit consumer and business demand. Firms raised prices to cover costs.

ISM and S&P surveys both confirm growth territory for services, as MarketScreener notes, even with demand strains.

Manufacturing Faces Deeper Challenges

ISM’s manufacturing PMI fell 0.5 points to 48.2, below expectations per Investing.com, marking nine straight months of contraction per ISM’s report, CFO Dive details. New orders dropped for the third month running, tied to softer international demand from tariffs and policy uncertainty.

Employment shrank faster, with most respondents focused on managing headcounts rather than hiring. S&P Global also saw manufacturing weaken, matching ISM’s downtrend.

Some bright spots exist—New York factory activity sped up per the New York Fed, and S&P noted output growth. But new orders slowed sharply, inventories hit highs not seen since 2007, and input costs rose from tariffs, squeezing margins, per Williamson.