November saw fastest jobs growth since December 2007 as global economic recovery continued

Source: ISM

Dec 27, 2010

November PMI data signaled that global economic activity increased for the sixteenth successive month. The JPMorgan Global All-Industry Output Index posted 54.6, broadly in line with October's four-month high of 54.8 and above the average for the current period of expansion. However, the index remained well below April's 34-month high.

November saw growth of service sector business activity outpace that for manufacturing output for the first time since the recovery began. Services activity rose for the sixteenth month running and at the fastest pace since June. Manufacturing production has now expanded throughout the past one-and-ahalf years, but the latest increase was less marked than in the previous month.

After accelerating sharply in October, growth in the US eased markedly in November – especially in the manufacturing sector. However, the rate of expansion in all-industry output remained above the global average. Growth also eased in China, dipping slightly below the average for the current period of expansion. India meanwhile recorded a substantial increase in activity and the steepest rate of expansion for four months.

Growth picked up to a three-month high in the Eurozone. UK output rose at a solid pace, with substantial growth of manufacturing production partly offset by the ongoing weaker performance of services. In contrast, Japan contracted for the sixth successive month, reflecting declines in both manufacturing output and services business activity.

Growth of global new business picked up in November, with the pace of expansion reaching its highest since May. New business rose at stronger rates in both the manufacturing and service sectors. Faster inflows of new work were seen in the US (six-month high), the Eurozone (three-month high), the UK (fastest since June) and India (three-month peak). Growth remained elevated in China. Reductions were reported in Japan, Spain and Ireland.

November saw global employment increase for the ninth successive month, with the rate of job creation the highest since December 2007. Growth of employment accelerated at manufacturers and service providers. Staffing levels increased in almost all of the economic regions covered by the survey, the notable exceptions being Japan, Spain and Ireland.

Average costs continued to rise at an elevated rate in November. Input prices increased for the sixteenth month running, with cost inflation only slightly below October's six-month peak. Manufacturing input prices rose to a substantially sharper degree than service sector costs. Rates of input price inflation were highest in China and the US.