US: S&P Global Services PMI drops to 46.1 in November vs. 47.9 expected

• US S&P Global Services PMI fell more than expected in early November.
• US Dollar struggles to find demand following the disappointing PMI surveys.

The business activity in the US service sector continued to contract at an accelerating pace in early November with the S&P Global Services PMI dropping to 46.1 from 47.8 in October. This print missed the market expectation of 47.9.

"In line with weak demand, new business fell at a solid pace in November," S&P Global elaborated. "The second successive monthly decrease in new orders was the sharpest seen since May 2020."

"On the price front, input costs rose at a slower pace midway through the fourth quarter," the publication further read. "The increase in cost burdens was the softest in almost two years, as firms noted lower prices for some key inputs." 

Market reaction

The US Dollar stays under heavy selling pressure after this data and the US Dollar Index was last seen losing 0.6% on the day at 106.52.