The PMI rose to 62.6 this month, up from 58.4 in October.
Such a strong jump represents a seven-month high in activity and the 26th consecutive month of growth.
Any figure above 50 indicates activity growth.
The jobs report showed private employers added 206,000 jobs in the month – the biggest gain since December 2010 and well above the 130,000 forecast by economists.
Better-than-expected housing and regional factory data, also released yesterday, reinforced the view that the US economy should avoid recession, though growth is unlikely to be brisk.
“These figures boost hopes of a firm gain for payrolls, and suggests the US economic outlook is considerably brighter than for the Eurozone,” said ING economist James Knightley.
“Indeed, aggressive central bank action today reinforces the view that the Fed will do all it takes to keep the recovery going.”