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US private-sector growth revised down as services expand at slower pace

Growth in the U.S. private sector in November was slightly slower than initially estimated, with the final seasonally adjusted IHS Markit U.S. composite PMI output index registering at 54.5, down from the flash estimate of 54.6 and from October's 55.2 reading.

The revised composite index figure still indicated the slowest growth in private-sector activity since June, IHS Markit said. Muted gains in both the manufacturing and services sectors led to a weaker overall output expansion.

"The slowest growth of service sector business activity since June, alongside a slight dip in the pace of manufacturing expansion, means the November PMI surveys registered a modest cooling in the overall rate of business growth," said Chris Williamson, chief business economist at IHS Markit.

"Mid-way through the fourth quarter, the surveys are still pointing to a reasonable GDP growth rate of approximately 2.5%," he added.

IHS Markit reported that its final U.S. services business activity index was 54.5 in November, down from 55.3 in October. Higher new order volumes and robust client demand drove business activity growth last month.

Another measure of the services sector's health also showed a slower rate of expansion in November. The nonmanufacturing index of the Institute for Supply Management fell to 57.4% from 60.1% in October.

The business activity index slipped to 61.4% in November from 62.2% in the previous month, and the new orders index dropped to 58.7% from 62.8%.

The employment index decreased to 55.3% from 57.5%, and the prices index fell to 60.7% from 62.7% as prices increased for the sixth consecutive month in November.

Sixteen nonmanufacturing industries reported growth in November, according to the Institute for Supply Management.