Prelim was 57.9
Prior was 58.8
Composite PMI 55.9 vs 57.6 prelim
Coimposite prior was 58.4
Sentiment regarding future activity fell to its lowest since May
Demand was reported to be high
Sentiment was overall at its lowest since May
This adds negative risk to the ISM services report at the top of the hour.
I’m fearful that the Fed is behind the curve on inflation and that it’s broadening. Of course, Trump could help to reverse that if he can get out of the Iran war ASAP.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence: “The October PMI surveys mark a strong start to the fourth quarter for the US economy, indicative of GDP rising at an annualised rate of over 4%. The star of the upturn remains the tech sector, but encouragingly solid supporting performances are also being seen in consumer-facing sectors and financial services
“However, the good news on growth is tainted by yet another worrying intensification of inflationary pressures and some disappointing forward-looking indicators from the survey.
“Although current output growth remains strong, the pace of expansion has slowed from recent highs, linked to slower gains in order book inflows and reduced confidence about the economic outlook.
“Business optimism fell sharply across the vast services sector in October, reflecting worries relating to affordability, interest rates, and the uncertain political environment.
“Average prices charged for services meanwhile rose at one of the fastest rates seen over the past four years. Combined with a jump in goods prices tracked by the October manufacturing PMI survey, the overall signal is for inflation to rise further above the Fed’s target in the coming months.”
This article was written by Adam Button at investinglive.com.
