Services sector sees growth in October, reports ISM

Services sector activity remained on a solid growth path in October, growing for the fourth consecutive month, according to the latest edition of the Services ISM Report on Business, released today by the Institute for Supply Management (ISM).

The October Services PMI, at 57.2 (a reading of 50 or higher signals growth), was up 1.1% over September, growing, at a faster rate, for the fourth consecutive month. September came in at 54.9, up 3.4%, over August. The August Services PMI, at 51.5, was essentially flat, with a slight 0.1% increase over July’s reading of 51.4, which was up 2.6% from June’s 48.8. May’s PMI was 53.8, following a 49.4 reading in April, which marked the first contraction since December 2022 (when the PMI was 49). Prior to that, the last contraction was in May 2020, when the PMI dropped to 45.4.

The October Services PMI reading represents the highest level in the past 12 months and is 3.8% above the 12-month average of 52.2. The lowest reading during that period was June’s 48.8.

ISM reported that 14 of the services sectors it tracks saw growth in October, including: Retail Trade; Information; Transportation & Warehousing; Accommodation & Food Services; Finance & Insurance; Construction; Mining; Public Administration; Utilities; Real Estate, Rental & Leasing; Educational Services; Professional, Scientific & Technical Services; Health Care & Social Assistance; and Wholesale Trade. The two sectors seeing contraction were: Other Services; and Management of Companies & Support Services.

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