US ISM Services PMI rose to 56.0 in October, up from 54.9 in September and surpassing the forecast of 53.3. This is the index’s highest reading since July 2022, reflecting robust growth in the services sector and a resilient economy despite broader global uncertainties.
Breaking down the components, business activity eased slightly to 57.2 from 59.9, while new orders also dipped to 57.4 from 59.4. Employment, however, saw a significant increase, jumping from 48.1 to 53.0, indicating solid hiring activity within the services sector. On the pricing front, prices fell to 58.1 from 59.4, suggesting a slight moderation in input costs.
According to historical correlations, the October reading of 56.0 in Services PMI aligns with 2.3% annualized increase in real GDP.
