- Prior was 50.2
- Composite 50.7 vs 51.0 prelim
- Prior composite 50.2
- business confidence rose to the strongest in four months,
- Input prices and output charges increased at the weakest rates in three years
- New orders fell for the third month running, albeit at only a slight pace
The ISM services sector survey is due at the top of the hour. The market is hardly waiting with US 10-year yields down 17 bps to 4.49%.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:
"The PMI survey paints a far more subdued picture of US economic health than the latest bumper GDP numbers, with October seeing very muted growth of business activity for a third successive month. A summer-surge in service sector activity, fueled by rising consumer spending, has stalled. Manufacturing is meanwhile also struggling to regain momentum amid weak global demand. As such, the survey data are broadly consistent with GDP rising at an annual rate of around 1.5%.
"An upside to the weak demand environment is the further cooling of price pressures in October, which brings the Fed's 2% target into focus for the first time in three years.
"The brighter outlook for inflation and hopes of a commensurate peaking of interest rates have helped lift business confidence in year-ahead prospects, but new business inflows need to pick up in both services as well as manufacturing to ensure robust growth can be sustained as we head towards the end of the year."
