Preliminary data released by IHS Markit on Monday pointed to further robust growth in business activity during November, at the fastest pace for over five-and-a-half years.

According to the report, the Markit flash manufacturing purchasing manager's index (PMI) came in at 56.7 in November, up from 53.4 in October. That was the highest reading since September 2014. Economists had expected the reading to edge down to 53.0. A reading above 50 signals an expansion in activity, while a reading below this level signals a contraction. The gain was underpinned by a marked expansion in output, largely driven by a significant uptick in new business as demand conditions improved. Moreover, the rise in production was the quickest since March 2015.

Meanwhile, the Markit flash services purchasing manager's index (PMI) rose to 57.7 in November from 56.9 in the previous month. The latest reading signal the strongest expansion in output since March 2015. Economists had expected the reading to drop to 55.3. Contributing to the sharp increase in business activity was a faster growth in new orders at service providers and one that was the quickest since September 2018.

Overall, IHS Markit Flash U.S. Composite PMI Output Index came in at 57.9 in November, up from 56.3 in October, signaling the fastest increase in private sector business activity since March 2015.

Chris Williamson, Chief Business Economist at HIS Markit noted: “November PMI surveys provide the first post-election snapshot of the US economy, and makes for very encouraging reading, though stronger economic growth is quite literally coming at a price.”