Agencies
The US manufacturing PMI rose to 48.4 in November, up from 46.5 in October, marking a five-month high but still indicating contraction. Notably, new orders exceeded 50 for the first time in eight months, signaling a potential rebound in demand. However, the sector remains under pressure from weak backlogs and ongoing supply chain issues, despite lower input costs.
Optimism has grown with hopes for business-friendly policies, yet fundamental challenges persist. Construction spending also increased by 0.4 percent in October, providing a modest boost to broader economic activity.
Job openings in the US increased by 372,000 to 7.74 million in October, while layoffs dropped sharply by 169,000, reflecting ongoing resilience in the labor market.
However, hiring slowed by 269,000 to 5.313 million, signaling caution among employers. With the ratio of job openings to unemployed rising to 1.11, worker confidence remains strong. While wage growth continues to fuel consumer spending, the Federal Reserve may weigh these dynamics as it considers further rate adjustments.
The ISM Services PMI for the US fell to 52.1 in November 2024, down from 56 in October and below the forecast of 55.7, marking the slowest growth in three months.
The decline was driven by slower growth in business activity (53.7), new orders (53.7), employment (51.5), and supplier deliveries (49.5). Inventories (45.9) and backlogs (47.1) also decreased, while price pressures edged up slightly (58.2).
ISM Chair Steve Miller noted that comments were mixed, with seasonal factors, election outcomes, and tariffs influencing cautious industry outlooks.
The total nonfarm payroll employment in the US increased by 227,000, according to the Bureau of Labor Statistics, while the unemployment rate ticked up to 4.2 percent. Job growth was driven by gains in health care (+54,000), leisure and hospitality (+53,000), and government employment (+33,000).
Social assistance and transportation manufacturing also saw notable increases, with the latter reflecting workers returning from strikes. Meanwhile, the retail sector shed 28,000 jobs, particularly in general merchandise stores.
Average hourly earnings rose by 0.4 percent to $35.61, highlighting continued wage growth. These figures underscore a resilient labor market amid ongoing economic uncertainties.
The US Dollar index closed the week at 106.055.
Switzerland’s Consumer Price Index (CPI) fell by 0.1 percent from the previous month to 106.9 points, while annual inflation remained modest at +0.7 percent, according to the Federal Statistical Office.
The decline was driven by lower prices for hotels, international package holidays, and new cars, along with seasonal drops in certain food categories like vegetables. However, these decreases were partially offset by rising costs in housing rentals and air transport. Core inflation, excluding volatile items, held steady, reflecting underlying price stability. With imported product prices falling -2.3 percent year-on-year. The USD/CHF currency pair closed the week at 0.8784.
The latest S&P Global UK Construction PMI for November 2024 reported a robust rise in overall construction activity, with the headline index climbing to 55.2, the highest in five months.
Growth was driven by a surge in commercial construction, which experienced its strongest expansion in over two years, and solid performance in civil engineering. However, housebuilding continued to struggle, declining at its sharpest pace since June, as rising costs and weakened demand weighed on the sector. Business confidence dropped to its lowest since October 2023, with concerns about economic uncertainty and input cost pressures.
Despite these challenges, commercial demand and infrastructure projects remain key drivers of growth. The GBP/USD currency pair closed the week at 1.2742.
Australia’s retail sales rose 0.6 percent month-on-month in November to AUD 36.7 billion, beating the forecasted 0.4 percent increase. Year-on-year growth reached 3.4 percent, with strong performance in non-food categories like electronics, which offset declines in clothing and department stores. Food-related sectors also showed steady growth, with cafes, and restaurants leading gains. The results reflect solid consumer demand, setting a positive tone ahead of the holiday season.
Australia’s GDP grew by 0.3 percent in the September quarter, below the expected 0.5 percent, as weak economic momentum persisted despite higher government spending. Annual growth slowed to 0.8 percent, the weakest since 2020, while per capita GDP declined for the seventh consecutive quarter. The Reserve Bank of Australia may revise its 1.5 percent annual growth forecast as the slowdown raises the likelihood of early rate cuts.
