Upturn in US services growth tainted by higher costs and reduced optimism about the year ahead

Private sector employment increased by 42,000 jobs in October and pay was up 4.5 percent year-over-year according to the October ADP National Employment Report® produced by ADP ...

Economic activity in the services sector returned to expansion in October, say the nation's purchasing and supply executives in the latest ISM® Services PMI® Report. The Services PMI® registered at 52.4 percent and is in expansion territory for the eighth time in 2025. The report was issued today by Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee: "In October, the Services PMI® registered a reading of 52.4 percent, 2.4 percentage points higher than the September figure of 50 percent. The Business Activity Index also returned to expansion territory in October, registering 54.3 percent, 4.4 percentage points higher than the reading of 49.9 percent recorded in September. The New Orders Index remained in expansion in October, with a reading of 56.2 percent, up 5.8 percent from September's figure of 50.4 percent and its highest reading since October 2024 (56.7 percent). The Employment Index contracted for the fifth month in a row with a reading of 48.2 percent, a 1-percentage point improvement from the 47.2 percent recorded in September. US ISM Services Index Oct: 52.4 (est 50.8; prev 50.0) - Prices Paid: 70.0 (est 68.0; prev 69.4) - New Orders: 56.2 (est 51.0; prev 50.4) - Employment: 48.2 (est 47.6; prev 47.2) ISM: US services sector rises in October Economic activity in the United States' services sector continued to grow in October, the Institute for Supply Management (ISM) revealed in its report published on Wednesday. Compared to the previous month, the Services Purchasing Managers' Index (PMI) went from 50% to 52.4%. The Business Activity Index increased from 49.9% to 54.3%. The Employment Index remained in contraction, but improved slightly, going from 47.2% to 48.2%. The New Orders Index continued to expand from 50.4% to 56.2%. The Supplier Deliveries Index worsened from 52.6% to 50.8% "The rebounds in both the Business Activity and New Orders indexes in October are positive signs, while the continued contraction in the Employment index shows a lack of confidence in the continued strength of the economy," Business Survey Committee Chair Steve Miller commented.