“Things Have Tapered Off” – US Services Economy Jumps To 13-Month Highs But New Orders Stall

After spiking to 2016 highs in September/October, the US Services economy slipped lower in November according to Markit with signs of margin squeezes appearing as input cost inflation hits a 15-month high, but prices charged remained flat, and payrolls growth remains weak (well below average). However, ISM reported a big beat, with Services at the highest since Oct 2015 (despite a drop in new orders).
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However, as Markit notes, survey respondents noted higher food prices and efforts by suppliers to pass on increased raw material costs. However, prices charged by service sector firms rose only slightly in November.

This post was published at Zero Hedge on Dec 5, 2016.