U.S. services PMI unexpectedly rises in October – Markit

LA CROISSANCE DANS LES SERVICES AUX USA AU PLUS BAS EN SIX MOISActivity in the U.S. services sector unexpectedly rose in October, boosting optimism over the state of the U.S. economy, according to preliminary data released on Wednesday.

In a report, market research group Markit said that its flash services purchasing managers’ index (PMI) rose to 54.8 in October, from the prior month’s reading of 52.3. Analysts had expected the reading to remain unchanged.

On the index, a reading above 50.0 indicates expansion, below indicates contraction.
Services make up approximately 80% of the U.S. economy which makes the data key for interpreting growth.

Markit noted that the increase in business activity in October accelerated at a robust pace, with new order volumes rising at the quickest rate this year.

Furthermore, the research group remarked that service providers reported the strongest level of business optimism since August 2015.
When combined with manufacturing activity, “the latest reading pointed to the sharpest expansion of private sector output since November 2015”, the report indicated.

“Taken together, the ‘flash’ PMIs suggest that the economy is growing at an annualized rate of around 2% at the start of the fourth quarter,” IHS Markit senior economist Tim Moore said.

On the downside, Moore noted that job creation remained relatively subdued in October, with firms reporting cautious hiring plans and efforts to alleviate pressures on margins.

 

via U.S. services PMI unexpectedly rises in October – Markit By Investing.com

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