WASHINGTON (Reuters) – Growth in U.S. service sector activity slowed more than expected in October to return to its slowest pace since May 2020, the Institute for Supply Management’s monthly survey shows. (ISM) released Thursday.
The ISM services index fell to 54.4 after hitting 56.7 the previous month. Economists polled by Reuters on average expected a figure of 55.5.
The sub-index measuring the evolution of new orders fell to 56.5 from 60.6. Professionals pointed to a sharp decline in exports, likely due to slowing global growth and a stronger dollar.
The component of prices paid by service companies fell to 70.7 after 68.7 and that of employment fell below the threshold of 50 separating contraction and expansion of activity, to 49.1 after 53 in September .
Another survey on the situation in services, that of S&P Global among purchasing managers, also shows a slowdown, its index falling to 47.8 after 49.3 in July.
(Lucia Mutikani, French version Laetitia Volga, edited by Jean-Stéphane Brosse)
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