Growth in the U.S. services sector cooled slightly in November due to supply and labor strains, according to the data firm IHS Markit, MarketWatch reported.
The firm said on Tuesday that its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to a reading of 56.5 in mid-November from 57.6 in October. A reading above 50 indicates growth in the private sector.
The rate of growth remains above the survey's long-run pre-pandemic average and is consistent with an economy that is regaining steam after a brief lull over the summer.
The services sector accounted for the pullback in activity, with IHS Markit noting ''some resistance to higher prices.''
''While growth is not matching the surge seen earlier in the year when the economy reopened, the fourth-quarter expansion should be well above the economy's long-run trend to mark a solid end to the year,'' said Chris Williamson, chief business economist at IHS Markit.
Though many firms reported business was strong because of increased domestic and international travel as well as the further easing of COVID-19 restrictions, the pace of growth slowed relative to previous months.
''The U.S. economy continues to run hot,'' Williamson said. ''However, the slowdown underscores how the economy is struggling to cope with ongoing supply constraints.''
Information from Reuters was used in this report.
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