American businesses are hitting their stride as the year winds down, with economic activity surging to a four-month high in November while new orders registered their most robust gains of 2025. The latest data paints a picture of an economy maintaining its resilience despite headwinds from overseas markets and mounting cost pressures.
The S&P Global flash composite Purchasing Managers’ Index (PMI) climbed to 54.8 in November, up from October’s 54.6 reading, according to data released on November 21. This uptick signals that the U.S. economy is on track for approximately 2.5 percent annualized GDP growth as the fourth quarter unfolds.
The standout performer in November’s report was the surge in new orders, which posted their strongest increase since January, demonstrating that domestic demand remains remarkably solid. This robust order activity suggests businesses are confident enough in future prospects to expand their operations and invest in growth, even as global economic uncertainty persists.
The services sector continues to serve as the primary engine driving this economic expansion, offsetting challenges faced by manufacturers who are grappling with a complex web of pressures. Manufacturing businesses report struggling with declining export demand as international markets show signs of weakness, while also contending with inventory buildups that reflect cautious planning in an uncertain trade environment.
Adding to manufacturers’ concerns are the ongoing effects of tariff-related cost increases, which continue to squeeze profit margins and complicate pricing strategies. These trade policy impacts are creating ripple effects throughout supply chains, forcing companies to reassess their sourcing strategies and cost structures.
Despite these manufacturing sector headwinds, the overall economic picture remains encouraging. The composite PMI reading above 50 indicates expansion across the broader economy, with the services sector’s strength more than compensating for manufacturing challenges. This dynamic reflects the fundamental shift toward a service-oriented economy that has characterized American economic growth for decades.
The November acceleration in business activity comes at a critical juncture as policymakers and market analysts closely monitor economic indicators for signs of how the economy might perform heading into 2026. The combination of strong domestic demand and robust new order growth suggests that consumer spending and business investment are maintaining their momentum despite various external pressures.
For businesses navigating this environment, the data provides both encouragement and caution. While domestic demand remains healthy and new orders are flowing, companies in export-dependent industries continue to face significant challenges that require strategic adaptation and careful inventory management.
The resilience shown in November’s PMI data underscores the American economy’s ability to maintain growth momentum even when confronted with global trade tensions and manufacturing sector pressures, positioning it for continued expansion as the year concludes.
