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Bloomberg News / Landov
Numbers: The USHS Markit manufacturing PMI in the United States rose from 55.7 in October to 55.4 in November. It was a minimum of three months. At the same time, IHS Markit's PMI increased from 54.8 to 54.4, its lowest level in two months.
What happened: The pace of US industry's sluggish growth is slowing as new order growth has slowed, according to a first reading of the November Purchasing Managers activity. Order books have grown at the slowest pace since December, IHS Markit said Friday. And hires have grown at the slowest pace for almost a year and a half. In addition, inflation is picking up, which is hurting business confidence.
In a broadcast survey like this, a reading greater than 50 indicates an improvement.
Lily: GDP growth of 3.5% marks the best two-quarter increase in four years
Big picture: Job growth continues, the economy is in full swing, consumers are more confident and businesses are benefiting from the adrenaline rush of tax cuts. However, slower growth is forthcoming and many analysts believe that the recent turmoil in global financial markets could signal a slowdown. With the recovery in activity, wages and prices, inflation could rise fast enough to hinder the economy.
As IHS Markit reported in its Friday publication, it should be noted that recent natural disasters – and their recovery – could make economic data more uncertain this fall.
What are they saying? "The surveys are broadly consistent with economic growth at an annualized rate of 2.5%," said Chris Williamson, chief economist at IHS Markit.
"The November survey raises warning signals suggesting that growth may slow in the coming months. In particular, recruitment growth slowed, as companies grew a little less optimistic about prospects. Merchandise exports also appear to be under increasing pressure, often linked to trade wars that have dampened demand. "
Look also: Existing Home Sales Mark Their First Increase in Six Months, While Housing Market Clouds Persist
Market reaction: The Dow Jones Industrial Average
DJIA, -0.45%
, which has lost 1% since the beginning of the year, fell sharply on Friday, as oil prices plummeted the markets in general. The oil slide is partly a response to the geopolitical jockey and partly to a slowdown in growth in China.
Look also: Why the drop in oil prices is now a net drag on the US economy
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