Preliminary data released by IHS Markit on Friday pointed to stronger increases in activity across both the manufacturing and service sectors during November.

According to the report, the Markit flash manufacturing purchasing manager's index (PMI) came in at 52.2 in November, up from 51.3 in October. That was the highest reading since April. Economists had expected the reading to increase to 51.5. A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction. According to the report, the increase in the headline PMI was supported by sharper and solid expansions in production and new orders.

Meanwhile, the Markit flash services purchasing manager's index (PMI) jumped to 51.6 this month, from 50.6 in the prior month. The latest reading was the highest one since July. Economists had expected the reading to increase to 51.0. Employment increased for the first time since August, while the upturn in new business was historically weak and optimism among service providers remained historically subdued, amid reports of less favourable demand conditions.

Overall, IHS Markit Flash U.S. Composite PMI Output Index came in at 51.9 in November, up from 50.9 in October, signaling the sharpest increase in private sector output since July.

Commenting on the flash PMI data, Chris Williamson, Chief Business Economist at HIS Markit, noted: “A welcome upturn in the headline index from the flash PMI adds to evidence that the worst of the economy’s recent soft patch may be behind us. Output of the combined manufacturing and service sectors rose in November at the fastest rate since July, spurred by improved inflows of new business. Encouragingly, firms took on staff again after two months of headcount reductions, primarily to help deal with rising backlogs of work. “