Markit Services PMI: Growth Remains Strong In October

The October US Services Purchasing Managers' Index conducted by Markit came in at 55.3 percent, unchanged from the August estimate. The consensus was for 55.9 percent. Markit's Services PMI is a diffusion index: A reading above 50 indicates expansion in the sector; below 50 indicates contraction.

Here is the opening from the latest press release:

October survey data indicated a further rise in business activity across the US service sector. The rate of expansion was in line with that seen in September and strong overall. New business, however, grew at a weaker pace and signalled the softest upturn since April. Meanwhile, employment levels expanded at a solid rate, and backlogs also continued to rise. On the prices front, input costs and output charges rose further but eased to seven- and six-month lows, respectively. The latest survey data signalled robust business confidence, with the degree of optimism rising from that seen in September.

The seasonally adjusted IHS Markit U.S. Services Business Activity Index registered 55.3 in October, unchanged from that seen in September. The latest index figure indicated a strong increase in overall business activity across the US service sector. Moreover, the rate of expansion was slightly faster than the long-run series average. Anecdotal evidence linked the rise in output to robust client demand and more favourable business conditions. [Press Release]

Here is a snapshot of the series since mid-2012.

Markit Services PMI