The U.S. private sector grew at the slowest pace since July, according to a report released Friday, as companies faced stronger cost pressures from hurricane-related supply-chain disruptions.
The Flash U.S. Composite PMI Output Index, a survey from IHS Markit that takes the temperature of the private sector, dropped to 54.6 in November from 55.2 in October. Results above 50 separate expansion from contraction.
November showed the "second-fastest rise in manufacturing input price inflation since December 2012," IHS Markit said in the report. "A number of firms cited higher prices for chemicals and energy following supply chain disruption linked to hurricanes Harvey and Irma."
New business growth was above average compared with the first half of the year, the report said, and employment in the private sector also rose from a month earlier.
The Flash U.S. Manufacturing PMI Index dropped to 53.8 in November, a decrease from 54.6 last month. Economists polled by The Wall Street Journal were predicting 54.2.
The Flash U.S. Services PMI Business Activity Index was 54.7 in November, a drop from 55.3 last month. Economists polled by The Wall Street Journal were predicting 55.5.
"Although expectations about the year ahead slipped lower in the service sector, future optimism hit a two-year high in manufacturing, suggesting the goods-producing sector may start to make a stronger contribution to the economy in coming months," IHS Markit Chief Business Economist Chris Williamson said in prepared remarks.
The final November reports will be released Dec. 1 for manufacturing and Dec. 5 for services and composite indicators.
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(END) Dow Jones Newswires
November 24, 2017 11:18 ET (16:18 GMT)