October service sector data
- Prior was 57.8
Details:
- business activity 61.2 vs. 63.0 last month
- new orders 58.5 vs. 61.5 last month
- backlog of orders 54.4 vs. 50.1 last month
- employment to 50.1 from 51.8 last month
- new export orders 53.7 vs. 52.6 last month
- imports 52.5 vs. 46.6 last month
- supplier deliveries 56.2 vs. 54.9 last month
- inventory change 53.1 vs. 48.8 last month
- inventory sentiment 51.1 vs. 55.4 last month
- Full report
This is the weakest since May, though it still remains well above 50. There are a few red flags here, particularly employment and rising inventories.
- "Business has improved, but greatly reliant on COVID-19-related restrictions. Supplier's inventories and lead times are longer and spotty with outages due to keeping lead times lean as a cash flow measure, but putting consistent supply at risk." (Accommodation & Food Services)
- "Interesting business cycle: Labor is still in short supply, and work orders are picking up." (Construction)
- "Challenges to maintain safety and prevent the spread of COVID-19 has meant changes in the way activities are carried out. Purchases of personal protective equipment [PPE] and facilities equipment along with modifications to buildings and walkways has led to higher spending in some areas." (Educational Services)
- "Given COVID-19, the adjustments we have made across the company has allowed us to reach previous employment levels, and those furloughed are back to work. Everyone is careful to wear the required PPE and keep distancing. We have added additional cleaning staff between shifts to upgrade sanitation." (Finance & Insurance)
- "The new normal COVID-19 environment is causing uncertainty, but we've seen an increase in business that is close to pre-COVID-19 volumes for procedures." (Health Care & Social Assistance)
- "While the economy is getting better, there is still very much uncertainty about the future. We are putting capital expenditures on hold until we gain additional confidence and certainty." (Information)
- "We are remaining cautiously positive and resuming normal business operations." (Management of Companies & Support Services)
- "Encouraging signs continue for an improved fourth quarter." (Professional, Scientific & Technical Services)
- "We continue to be cautiously optimistic that the rebound in business that began in July continues to sustain." (Retail Trade)
- "Business continues to gain as people are travelling and businesses are opening up to consumers." (Wholesale Trade)
