- U.S. construction spending reached a six-month peak and factory orders rebounded, while final manufacturing activity was greater than anticipated. Overseas, the U.K. services sector reached a four-month high and eurozone manufacturing achieved its best performance in 18 months.
- In October, U.S. construction spending advanced by 1%, the most since May, and grew 13% in the year over year. The pace of federal spending reached a nine-year peak, while residential building gained for the seventh straight month.
- A surge in durable goods led an October rebound in factory orders, which advanced by 1.5%. Core capital goods (excluding transportation) spiked due to a pick-up in machinery and computers orders; automobile orders fell 2% during the period.
- The Institute for Supply Management (ISM) indicated that manufacturing activity unexpectedly contracted in November. In contrast, Markit reported that manufacturing outpaced its preliminary reading for the month. Both organizations reported multi-year lows in the pace of new orders, reduced inventories of finished goods and decelerating exports.
- Services sector activity fell to a six-month low in November, according to ISM, due to new export orders narrowing for the first time since April. Conversely, Markit reported that new orders boosted services-sector activity to a three-month peak.
- Pending home sales were lower than anticipated in October, according to the National Association of Realtors, due to limited supply and rapidly appreciating prices in some markets. However, sales expanded by 3.9% in the year over year.
- Third-quarter annualized nonfarm productivity rose by 2.2%. Unit labor costs advanced by twice the anticipated rate, reaching 1.8%, attributable to unanticipated increases in compensation and hours worked. Labor costs widened by 3% in the year over year.
- Initial jobless claims climbed by 9,000 to 269,000 for the week ending November 28. The four-week moving average decreased marginally, while continuing claims by rose 6,000 to 2.16 million for the week ending November 21.
- Nonfarm and private payrolls gained by more than expected during November, yet slackened considerably compared to October’s outturn. The unemployment rate remained unchanged at 5%, and average-hourly earnings expanded by 0.2%.
- U.K. manufacturing decelerated at a greater-than-anticipated pace in November. The services sector outperformed estimates, reaching a four-month high due to new orders acceleration. Construction activity, while still in expansion territory, hit a seven-month trough in November.
- Eurozone manufacturing activity hit an 18-month peak in November, as anticipated. Greater exports resulted in production and new orders accelerating to multi-month highs. Services activity improved, albeit at a slower-than-anticipated pace, as new and backlog orders rose.
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