The US composite index is 54.1, slightly less than in September (54.0) and also less than the flash estimate (54.3). This indicates that growth for the sample slowed in October compared to September.

The US services index for October is well above the 50-growth threshold, at 55.0, it is 0.2 points less than in September (55.2) and also 0.3 points less than the October flash estimate (55.3). Still, business activity has now increased in every of past 21 months.

The latest rise in activity coincided with a solid expansion in new business, with companies reporting securing new clients and willingness among customers to commit to new projects. As new orders continued to rise, employment fell as firms were unwilling to expand staffing levels.

Output prices increased, reflecting the passing on of higher input costs, which continued to rise at a pace exceeding the series average. Still, the rate of output price inflation slowed sharply and was the joint-weakest in nearly four-and-a-half years, equal to that of January.


Business confidence also rebounded in October, rising to the highest since June. The US RPI stands at minus 12 and RPI-P stands at minus 9, overall economic activity is within market forecasts.

US Services Purchasing Managers' Index (PMI) is based on monthly questionnaire surveys collected from over 400 U.S. companies which provide a leading indication of what is happening in the private sector services economy. It is seasonally adjusted and is calculated from seven components, including New Business, Employment and Business Expectations.

Investors need to keep their fingers on the pulse of the economy because it indicates how various types of investments will perform. The Markit Services PMI provides advance insight into the services sector, which gives investors a better understanding of business conditions and valuable information about the economic backdrop of various markets. The stock market likes to see healthy economic growth which generally translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures. The PMI data are also used by many Central Banks to help make interest rate decisions.

The IHS Markit Services Flash data give a detailed look at the services sector, the pace of growth and the direction of this sector. Since the service sector accounts for more than three-quarters of U.S. GDP, this report has a significant influence on the markets. In addition, its sub-indexes provide a picture of new business, employment, business expectations and prices.