Economic activity in the services sector grew in October for the fifth month in a row, according to the Services ISM Report On Business from the Institute for Supply Management.
“The Services PMI registered 56.6 percent, 1.2 percentage points lower than the September reading of 57.8 percent. This reading represents a fifth straight month of growth for the services sector, which has expanded for all but two of the last 129 months,” Anthony Nieves, CPSM, CPM, APP, CFPM, chair of the Institute for Supply Management services business survey committee, said. “The Supplier Deliveries Index registered 56.2 percent, up 1.3 percentage points from September’s reading of 54.9 percent. Supplier Deliveries is the only ISM Report On Business index that is inversed; a reading of above 50 percent indicates slower deliveries, which is typical as the economy improves and customer demand increases.
“The Prices Index figure of 63.9 percent is 4.9 percentage points higher than the September reading of 59 percent, indicating that prices increased in October at a faster rate. According to the Services PMI, 16 services industries reported growth. The composite index indicated growth for the fifth consecutive month after a two month contraction in April and May. There has been a slight pull back in the rate of growth in the services sector in the month of October. Respondents’ comments are cautiously optimistic about business conditions and the economy. There is a degree of uncertainty due to the pandemic, capacity constraints, logistics and the elections.”
There were 16 service industries that reported growth in October, including transportation and warehousing, construction, finance and insurance. The two industries reporting a decrease in October were arts, entertainment and recreation; and public administration.
What Respondents Are Saying
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