US S&P Global October final services PMI 55.0 vs 55.3 prelim

• Prelim was 54.3
• Prior was 55.2
• Composite index 54.1 vs 54.3 prelim (54.0 prior)
• Employment falls for third straight month but only marginally
• Output price inflation cools to joint-lowest in 4.5 years
• New export orders growth slows to 4-month low
• Business confidence rebounds to highest since June

Chris Williamson, Chief Business Economist at S&P Global
Market Intelligence :

“The US service sector notched up another strong
performance in October, helping offset the current weakness
of the manufacturing sector to drive a solid pace of overall
economic growth again at the start of the fourth quarter.

“The services economy’s consistently impressive growth in
recent months has helped the US outperform all other major
developed economies. October’s strong performance is
consistent with GDP continuing to rise at an annualized rate in
excess of 2%.

“Particularly welcome news comes from the cooling inflation
picture. Average prices charged for services rose at a sharply
reduced rate in October, showing one of the smallest increases
seen for over four years, as competition intensified in the
services economy.

“Firms’ expectations for the coming year have meanwhile
perked up from a slump in September, though much
uncertainty persists in relation to the business climate after the
election, causing many firms to pause hiring until the political
landscape becomes more settled.”

The ISM services index is due at the top of the hour, this report add some slight downside risk but the drop in prices is a good sign.

This article was written by Adam Button at www.forexlive.com.