{"id":55605,"date":"2025-11-05T11:08:28","date_gmt":"2025-11-05T15:08:28","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/us-services-and-composite-pmis-signal-continued-economic-expansion-in-october-amid-dwindling-business-confidence\/55605\/"},"modified":"2025-11-05T11:08:28","modified_gmt":"2025-11-05T15:08:28","slug":"us-services-and-composite-pmis-signal-continued-economic-expansion-in-october-amid-dwindling-business-confidence","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/us-services-and-composite-pmis-signal-continued-economic-expansion-in-october-amid-dwindling-business-confidence\/55605\/","title":{"rendered":"US Services and Composite PMIs Signal Continued Economic Expansion in October Amid Dwindling Business Confidence"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li>The <strong>US S&amp;P Global Services PMI<\/strong> for October finalized at <strong>54.8<\/strong>, falling below the 55.2 estimate and the previous reading of 55.2, yet still signaling <em>solid growth<\/em> in the service sector.<\/li>\n<li>The <strong>US S&amp;P Global Composite PMI<\/strong> for October registered <strong>54.6<\/strong>, missing the 54.9 estimate and down from the previous reading of 54.8, but still indicating <em>continued expansion<\/em> in overall private sector activity.<\/li>\n<li>Despite the expansion, business confidence reached a <em>six-month low<\/em> due to ongoing economic and political uncertainty, contributing to <em>modest hiring growth<\/em>.<\/li>\n<li>Selling price inflation eased to its <em>lowest level since April<\/em>, suggesting some moderation in price pressures despite persistent <em>elevated input costs<\/em> from tariffs and employee expenses.<\/li>\n<\/ul>\n<p>The U.S. private sector continued its expansion in October, with both the services and composite Purchasing Managers&#39; Index (PMI) readings indicating sustained, albeit slightly softer than estimated, growth. The final <strong>S&amp;P Global (<a href=\"\/stock\/SPGI\">SPGI<\/a>) US Services PMI<\/strong> settled at <strong>54.8<\/strong> for October, missing the consensus estimate of 55.2 and matching the previous month&#39;s flash reading of 55.2. However, this represents an acceleration from September&#39;s final Services PMI of 54.2.<\/p>\n<p>Similarly, the <strong>S&amp;P Global (<a href=\"\/stock\/SPGI\">SPGI<\/a>) US Composite PMI<\/strong>, which encompasses both manufacturing and services, came in at <strong>54.6<\/strong> in October. This figure was below the 54.9 estimate and the previous flash reading of 54.8, but still marked an improvement from September&#39;s final Composite PMI of 53.9. The rise in overall activity was supported by solid increases in new business growth across both sectors.<\/p>\n<h2>Business Confidence Wanes, Hiring Remains Subdued<\/h2>\n<p>Despite the ongoing expansion, a notable concern emerged in the form of declining business confidence. Optimism among firms fell to a <em>six-month low<\/em> in October, attributed to persistent economic and political uncertainty. This subdued outlook translated into only <em>modest hiring growth<\/em>, as companies expressed reluctance to significantly expand their workforces.<\/p>\n<p>Chris Williamson, chief business economist at <strong>S&amp;P Global Market Intelligence (<a href=\"\/stock\/SPGI\">SPGI<\/a>)<\/strong>, noted that October&#39;s data suggests the U.S. economy entered the fourth quarter with <em>strong momentum<\/em>. He added that the current rate of business activity growth is commensurate with an annualized GDP increase of approximately <strong>2.5%<\/strong>, following a solid expansion signaled for the third quarter.<\/p>\n<h2>Inflationary Pressures Show Signs of Easing<\/h2>\n<p>On the inflation front, there was some positive news. Selling price inflation in the services sector eased to its <em>lowest level since April<\/em>. This moderation occurred despite businesses continuing to face <em>elevated input cost pressures<\/em>, driven by factors such as tariffs and rising employee expenses. Both input and output prices for the composite index also saw slight reductions, although they remain at moderately elevated levels.<\/p>\n<p>The rebound in the composite PMI to these levels has historically been consistent with an annualized GDP growth of around <strong>3%<\/strong>. However, the correlation between PMI and GDP has been weaker in the post-COVID era. Analysts suggest that the Federal Reserve may still consider interest rate cuts, particularly given that employment growth continues to lag behind the pace of economic activity.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways The US S&amp;P Global Services PMI for October finalized at 54.8, falling below the 55.2 estimate and the 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