US Business Activity and Optimism Boosted by End of Government Shutdown

Core Insights - Business activity in the United States increased for the second consecutive month, reaching a four-month high in November, as reported by S&P Global [1] - The Flash U.S. Composite PMI Output Index rose from 54.6 in October to 54.8 in November, indicating growth in both services and manufacturing sectors [2] - The U.S. economy is showing signs of buoyancy, with an estimated annualized GDP growth of about 2.5% in the fourth quarter [3] Sector Performance - Services companies reported their strongest output increase since July and the largest increase in new business this year [2] - Manufacturing companies experienced a robust increase in production, although there was a slowdown in new orders [2] - Optimism among manufacturing companies reached a five-month high, while services companies' optimism hit an 11-month high [4] Economic Context - The end of the government shutdown on November 12, which lasted for 43 days, has contributed to improved economic sentiment [5] - The government shutdown had significant economic impacts, risking $3 billion a week for small business contractors and potentially costing the travel economy $1 billion a week [6] - Small business optimism saw a slight decline in October, with reports of decreased sales and profits [7]