US services PMI rises fastest in 3 months in October

By Ovunc Kutlu

ANKARA (AA) - The Services Purchasing Managers Index (PMI) in the US increased in October at its fastest growth in three months and beat market expectation, the London-based global data provider IHS Markit said Wednesday.

The index, which covers transportation, communication, business and personal services, hotels and restaurants, rose to 58.7 in October, up 3.8 points from 54.9 in September. The market expectation was 58.2.

While a reading above 50 indicates expansion in the sector, a figure below 50 shows contraction.

"October data signaled a strong rise in new orders at service providers, with the pace of growth quickening to a three-month high," said the survey based on around 400 service sector companies. "Companies stated that demand from new and existing customers helped boost new sales."

"Meanwhile, the rate of cost inflation eased to an eight-month low, despite being quicker than any pace of increase seen before March 2021. In response to a further rise in costs, firms raised their selling prices at the fastest rate on record," it added.