Business activity in the US private sector eased in October, hitting a four-month low, according to flash data released by market research group IHS Markit. The composite purchasing managers’ index (PMI), tracking both the manufacturing and services sectors, fell to 54.6 in November from 55.2 in October.
Markit also said that its preliminary services purchasing managers’ index (PMI) slid to 54.7 in November from the prior month’s reading of 55.3.
Analysts had expected the reading to climb to 55.6.
The services sector accounts for approximately 80% of the US economy, which makes the data crucial for estimating growth.
The IHS Markit also reported that its flash manufacturing PMI declined to 53.8 in November from the previous month’s reading of 54.6.
Economists had predicted the index would rise only to 55.6.
According to analysts, the readings suggested GDP growth of about 2% in the fourth quarter.