US ISM Services Index Slips to 54.5 in October as Equity Markets Advance

The US ISM Services PMI edged down to 54.5 in October from 54.9 in September, slightly missing expectations between 54.7 and 54.8, while US equity markets rallied with the S&P 500 climbing 1.41%. Despite the modest headline deceleration, the reading signaled expansion for the 28th consecutive month. Underlying components showed slowing momentum, with new orders declining to 55.9 from 59.8 and business activity dropping to 53.8 from 56.5. In contrast, the employment index advanced to 51.4 from 50.1. Input cost pressures remained elevated as the prices paid gauge held at 73.0.