- Markit Services PMI fell to 50.6 in October from 50.9.
- Markit Composite PMI dropped to its lowest level since February 2016.
- US Dollar Index retreated from session highs on uninspiring data.
The IHS Markit’s Services Purchasing Managers’ Index (PMI) in the United States fell to 50.6 in October’s final reading from 50.9 in September and missed the market expectation of 51.
With the initial reaction, the US Dollar Index pulled away from session highs and was last seen at 97.74, adding 0.18% on the day.
Further details of the report revealed that the Composite PMI fell to 50.9 in October from 51 in September, showing that the economic activity expanded at its softest pace since February 2016.
Commenting on the data, “Although October saw signs of manufacturing pulling out of its recent soft patch, the far-larger service sector remained in the doldrums as inflows of new work failed to grow for the first time since 2009,” said Chris Williamson, Chief Business Economist at the IHS Markit. “Taken together, the manufacturing and service sector surveys consequently suggest that the US economy got off to a disappointing start in the fourth quarter, consistent with GDP growing at an annualized rate of less than 1.5%.
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