Investing.com – Business activity in the U.S. private sector eased in October, hitting a four-month low and dampening optimism over the American economy, according to preliminary data released on Friday.
In a report, market research group IHS Markit said that its composite purchasing managers’ index (PMI), covering both the manufacturing and services sectors, fell to to 54.6 in November, from the prior reading of 55.2.
On the indices, a reading above 50.0 indicates expansion, below indicates contraction.
By sectors, the research group said that its flash services purchasing managers’ index (PMI) decreased to 54.7 in November, also a four-month low, from the prior month’s reading of 55.3.
Analysts had expected the reading to rise to 55.6.
Services make up approximately 80% of the U.S. economy which makes the data key for interpreting growth.
IHS Markit also said that its flash manufacturing purchasing managers’ index (PMI) declined to 53.8 in November, a two-month low, from the prior month’s final reading of 54.6.
Economists had estimated that it would rise to 55.6.
“U.S. businesses reported another month of solid growth in November, putting the economy on course for a reasonable, though by no means stellar, fourth quarter,” IHS Markit chief economist Chris Williamson said in the report.
He specified that the readings suggested GDP growth of about 2%.
After the report, EUR/USD was trading at 1.1917 from around 1.1914 ahead of the release of the data, GBP/USD was at 1.3353 from 1.3346 earlier, while USD/JPY traded at 111.37 compared to 111.38 before the release.
The US dollar index, which tracks the greenback against a basket of six major rivals, traded at 92.72 compared to 92.73 before the report.
Meanwhile, U.S. stocks were trading higher after the open. The Dow 30 gained 39 points or 0.16%, the S&P 500 rose 5 points, or 0.18%, while the tech-heavy Nasdaq Composite traded up 11 points, or 0.15%.
Elsewhere, in the commodities market, gold futures traded at $1,289.59 a troy ounce, compared to $1,290.40 ahead of the data, while U.S. crude oil changed hands at $58.70, compared to $58.76 earlier.