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U.S. service providers posted a sharp upturn in business activity during October, backed by a stronger expansion in new business.
Source: IHS Markit.
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The adjusted final IHS Markit US Services PMI Business Activity Index posted 58.7 in October, up from 54.9 in September, higher than the earlier posted ‘flash’ estimate of 58.2.
Meanwhile, concerns relating to labor shortages and unstable supply chains triggered a decline in business confidence to an eight-month low.
October data signaled a surge in new orders at service providers, with the growth rate rising to a three-month high.
Chris Williamson, Chief Business Economist at IHS Markit stated that the final PMI data add to the signals that the US economy has surged again in the fourth quarter.
The IHS Markit US Composite PMI Output Index rose to 57.6 in October from 55.0 in September, signaling the fastest rise in private output since July.
Even though manufacturing production remained hampered by supply constraints, the overall expansion was backed by an improved service sector.
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