US services sector activity cools slightly in October; inflation remains elevated
SPY•SPY•SPY•SPY•The ISM services PMI edged down to 54.5 in October from 54.9 in September, while its prices-paid measure remained elevated at 73.0. New orders fell to 55.9, and supplier deliveries slowed further.
The Institute for Supply Management's nonmanufacturing PMI slipped to 54.5 in October from 54.9 in September, compared with economists' forecast of 54.8. A reading above 50 indicates growth; services account for more than two-thirds of US economic activity.
The new-orders measure fell to 55.9 from 59.8. Supplier deliveries rose to 56.7 from 53.2, indicating slower deliveries, while the prices-paid measure eased to 73.0 from 74.0. Deliveries have slowed for 23 consecutive months.
The services employment measure rose to 51.4 from 50.1. Economists expect inflation to remain above the Federal Reserve's 2% target into 2027; the Fed kept its benchmark rate at 3.75%-4.00% last Wednesday. A Reuters survey forecast October payroll growth of 65,000 and an unchanged unemployment rate of 4.2%.
