Core Insights - US business activity accelerated in November, reaching the strongest growth in four months, driven by a surge in the services sector and improved business confidence regarding future economic prospects [1][2] Group 1: Economic Indicators - The S&P Global's preliminary composite output index rose by 0.2 points to 54.8, indicating economic expansion as it remains above 50 [1] - The services index reached a four-month high, while the manufacturing sector's expansion slowed down [1] - The composite index for expected output over the next year increased by 7.3 points, marking the largest monthly gain in five years [1] Group 2: Inflation and Costs - Inflation pressures rebounded in November for the first time since July, with businesses reporting higher import tariffs leading to increased costs [1] - The materials prices paid index rose to 63.1, the second-highest level in three years, while the input cost index for services reached its highest level since early 2023 [1] - Service sector pricing also increased, indicating rising costs amid persistent inflation [1] Group 3: Employment and Manufacturing Challenges - Despite high costs, hiring remained moderate, with the composite employment index showing a slight decline [1] - The composite new orders index rose to its highest level of the year, driven entirely by a rebound in service sector demand [2] - Manufacturing faced challenges with slowing new order growth and a significant increase in finished goods inventory, reaching the highest level recorded since 2007 [2]