U.S. Business Activity Index Soars to 31-Month High Amid Trump Influence
The Composite PMI Manufacturing Index, which measures business activity in the U.S., reached its highest level in 31 months in November, fueled by hopes surrounding the Donald Trump administration. Expectations of low interest rates and pro-business policies have indicated a revival in economic activities.
According to data published by S&P Global, the U.S. Composite PMI Manufacturing Index rose to 55.3 in November. This marks the highest level recorded since April 2022, having been at 54.1 in October. The increase in the Composite PMI value suggests that economic growth has gained momentum in the fourth quarter.
Signals of economic growth While the PMI data indicates a speeding up of economic growth in the fourth quarter, tangible economic indicators also support this growth. Key indicators such as retail sales show that, despite weaknesses in the housing sector and stagnation in the manufacturing industry, the economy demonstrates solid growth this quarter.
Chris Williamson, chief business economist at S&P Global Market Intelligence, stated that the increase in PMI data indicates accelerating economic growth. Williamson also emphasized that low interest rates and the new administration's approach of implementing more pro-business policies contributed to the rise in production and order entries in November.
Developments in manufacturing and services sectors The preliminary manufacturing PMI value rose from 48.5 last month to 48.8. These results aligned with economists' expectations. The preliminary services PMI, however, surged to 57 from 55 in October, marking the highest level since March 2022. This figure significantly surpassed the economists' forecast of 55.2, indicating a reassuring upward trend in the sector.
The increase in the services sector reflects signs of consumer and business confidence despite economic uncertainty. The results predict that the U.S. economy will perform strongly in the last quarter of the year, and the impact of policies will become even more pronounced in the upcoming period.