Economic Buzz: US ISM service sector activity returns to expansion in October
The ISM said its services PMI climbed to 52.4 in October after falling to 50.0 in September, with a reading above 50 indicating growth.
With the bigger than expected increase, the services PMI reached its highest level since hitting 53.5 in February.
The rebound by the headline index partly reflected a turnaround by business activity, as the business activity jumped to 54.3 in October from 49.9 in September.
The new orders index also surged to 56.2 in October from 50.4 in September, reaching its highest level since hitting 56.7 in October 2024.
The ISM said the employment index also crept up to 48.2 in October from 47.2 in September, but a reading below 50 indicates the fifth straight month of contraction.
The report also said the backlog of orders index was in contraction territory for the eighth straight month, plunging to 40.8 in October from 47.3 in September and hitting its second-lowest reading since May 2009.
On the inflation front, the report said the prices index inched up to 70.0 in October from 69.4 in September, reaching its highest level since hitting 70.7 in October 2022.
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