Economy

Economic Data Roundup (11/06/2017)

11/6/17 12:00 PM

iStock-177853320.jpgThere are two reports on the economy worth mentioning this morning. First, the purchasing managers' index (PMI) from IHS Markit for the U.S. services sector, which accounts for a much larger share of the overall economy than manufacturing, ended October at 55.3. That was unchanged from September and slightly worse than expected but still one of the best readings of the past two years. The rate of new business growth slowed last month but job creation improved as service providers continued to respond to “greater business requirements and rising client demand.”

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On the inflation front, margin strain moderated in October as input prices lifted at a slower pace and service providers were able to pass any higher costs onto clients thanks to “resilient demand conditions.” Even more encouraging was the Institute for Supply Management’s (ISM’s) non-manufacturing index, which rose to 60.1 in October. That was the best reading since 2005 and well above economists’ forecasts. Measures of production and employment improved last month but new orders growth slowed. Comments from surveyed managers were somewhat mixed. IHS Markit’s Chris Williamson added that recent survey data highlight “the dilemma facing the Fed as it seeks to determine the right policy course amid signs of solid growth but soft inflation.”

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Sources: Econoday, IHS Markit, ISM, FRBSL

Post author: Charles Couch