The ISM’s services index fell to 57.1 in October from 58.6 in September.
While this was weaker than the 58.0 expected by economists, it was nevertheless well above the breakeven level of 50.
“The New Orders Index registered 59.1 per cent, 1.9 percentage points lower than the reading of 61 per cent registered in September,” the ISM said in its report. “The Employment Index increased 1.1 percentage points to 59.6 per cent from the September reading of 58.5 per cent and indicates growth for the eighth consecutive month. The Prices Index decreased 3.1 percentage points from the September reading of 55.2 per cent to 52.1 “
Here are some quotes the ISM gathered from its industry sources:
- “Business is steady with new product launches.” (Information)
- “The general business outlook is favourable. Approaching 2015 with cautious optimism.” (Finance & Insurance)
- “Healthcare market continues to see challenges and uncertainty.” (Health Care & Social Assistance)
- “Economy appears to be slowing. Fears of ISIS, Ebola, etc.” (Professional, Scientific & Technical Services)
- “It appears that customers are beginning to engage which is producing sales. Not where we want to be, but continuing to see improvement.” (Retail Trade)
- “Sales very sporadic. It’s up and down weekly.” (Accommodation & Food Services)
- “Business activity remains robust here.” (Utilities)
- “The past few months have been record months for us in terms of sales, but we are seeing margin pressure.” (Wholesale Trade)
Earlier, we learned Markit’s US services PMI fell to 57.1 in October, which was right in line with expectations. This was down from 58.9 in September.
“Service sector activity growth reflected robust new business gains in October,” Markit noted. “Reports from survey respondents suggested that improving underlying demand and strengthening domestic economic conditions had supported sales volumes. However, the latest expansion of overall new business intakes was slower than the three-month high recorded in September.”