×
Newsmax TV & Webwww.newsmax.comFREE - In Google Play
VIEW
×
Newsmax TV & Webwww.newsmax.comFREE - On the App Store
VIEW
Tags: u.s. service sector

US Service Sector at 5-Month Low in October

US Service Sector at 5-Month Low in October
(Dreamstime)

Friday, 03 November 2023 10:21 AM EDT

The U.S. services sector slowed for a second straight month in October, but momentum is likely to pick up in the near term amid an acceleration in growth in new orders.

The Institute for Supply Management (ISM) said Friday that its non-manufacturing PMI dropped to a five-month low of 51.8 from 53.6 in September. The Services PMI has been declining since August, when it rose to the highest level in six months.

A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled by Reuters had forecast the index slipping to 53.0.

Demand for services initially surged as Americans resumed normal lives after COVID-19 lockdowns. But momentum has ebbed, with spending swinging back to goods. Spending on goods far outpaced outlays on services in the third quarter.

A measure of new orders received by services businesses increased to 55.5 last month from 51.8 in September, which was the lowest level since December. Export orders slumped, likely reflecting the dollar's strength against the currencies of the United States' main trading partners.

Services inflation remained sticky. The services sector is at the heart of the Federal Reserve's battle to bring inflation down to its 2% target. Services prices are less responsive to interest rate hikes. A measure of prices paid for services businesses for inputs dipped to 58.6 from 58.9 in September.

Some economists view the ISM services prices paid measure as a good predictor of personal consumption expenditures inflation, tracked by the U.S. central bank for monetary policy.

A measure of services sector employment fell to 50.2 from 53.4 in September.

© 2024 Thomson/Reuters. All rights reserved.


StreetTalk
The U.S. services sector slowed for a second straight month in October, but momentum is likely to pick up in the near term amid an acceleration in growth in new orders.
u.s. service sector
270
2023-21-03
Friday, 03 November 2023 10:21 AM
Newsmax Media, Inc.

Sign up for Newsmax’s Daily Newsletter

Receive breaking news and original analysis - sent right to your inbox.

(Optional for Local News)
Privacy: We never share your email address.
Join the Newsmax Community
Read and Post Comments
Please review Community Guidelines before posting a comment.
 
Get Newsmax Text Alerts
TOP

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved
NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved