Activity in US services sector slows in October

Activity in US services sector slows in October. The Purchasing Managers’ Index orders (PMI) outside production decreased to 54.8 points in October from 57.1 points in September, staying over the key border already for 81 consecutive months. However, the index remained below the economists forecast for level of 56.0 points. The decline in the index was mainly due to weaker business activity, fewer new orders and lower employment.

There is some delay of production, which signaled that the earlier gains were not sustainable. However, some components of the Purchasing Managers’ Index recorded increases in October, as the price index rose by 2.6 points to 56.6 points, which largely reflects higher commodity prices and in some way influenced by oil prices.

Thirteen sectors reported growth, including transport services and warehousing, construction, services in management of companies, real estate and professional services. Five sectors recorded declines, including educational services and mining.

The money, which Americans spend on services are about 70% of all costs for personal consumption. The service sector itself is responsible for the majority of employment growth in the US in September.

more recommended stories