Published: Tue, December 05, 2017
Finance | By Loren Pratt

German political impasse weighs on services sector growth in November PMI

German political impasse weighs on services sector growth in November PMI

"November PMI data signalled steep growth in business activity across the Russian service sector, with the expansion accelerating to reach a ten-month high", said IHS Markit economist Sian Jones.

The seasonally adjusted business activity index stood at 48.5 in November, off from 51.7 in October.

Growth was underpinned by a rise in new orders at businesses from hotels to hairdressers, measured by a survey sub-index which rose to 54.3 from 52.1 in October.

The construction sector grew in November, according to the purchasing managers' index (PMI) figures from Markit/CIPS released on Monday, with index activity rising from 50.8 in October to 53.1 in November (above 50 is growth), beating consensus expectations of subdued growth at 51.0. The initial reading was 54.9.


In PMI lexicon, a print above 50 means expansion and a score below that denotes contraction.

New orders received by Chinese services providers rose at the fastest rate in three months in November, with a number of firms attributing increasing sales to new client wins and promotional activities, the survey showed. Employment levels in the service sector increased further in November, the survey showed, with job creation accelerating to its strongest pace since May 2013.

"We are surprised with the sudden dip in services activity in November, especially given that manufacturing firms, which face similar issues, reported higher activity".

Also known as the tertiary sector, it accounted for 51.6% of the country's economic output in 2016, up from 50.2% in 2015, and contributed to almost 60% of growth in the gross domestic product, according to the National Bureau of Statistics.

Like this: