Markit October final services PMI 58.7 vs 58.2 prelim

Service sector survey

Markit October final services
Sept final reading was 54.9
Composite PMI 57.6 vs 57.3 prelim

The ISM survey is due at the top of the hour and expected at 62.0 from 61.9 in September.

Commenting on the latest survey results, Chris Williamson,
Chief Business Economist at IHS Markit, said:

“The final PMI data add to indications that the US economy
has picked up speed again in the fourth quarter. After the
Delta variant caused growth to slow in the third quarter,
the easing of virus case numbers has been followed by a
strong revival of economic activity, notably in the service
sector, which looks set to be the driving force of the
economy as we head towards the end of the year.

“While the service sector is seeing a waning impact from
the pandemic, it’s a different story in manufacturing,
where the supply crisis continues to cause havoc and
dampen production growth. Supply delays worsened
in October, which has in turn fed through to a further
intensification of inflationary pressures.

“Going forward, the big questions will revolve around
the extent to which manufacturers can overcome their
supply chain bottlenecks, which look set to worsen as
we head towards the busy holiday period, and whether
the service sector can sustain its current resilience as the
rebound from the pandemic starts to fade and incomes are
squeezed by higher prices.”

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