US: ISM non-manufacturing to print 59.3 in October – Nomura

Analysts at Nomura expect a slight moderation in the US ISM nonmanufacturing index for October to 59.3 from 61.6.

Key Quotes

“The strong jump in the ISM nonmanufacturing index in September was unexpected and was coupled with a broad-based improvement in the sub-indices. While we think domestic demand remains strong, concerns about skilled labor shortages and the impact of tariffs on input costs, especially for construction and mining sectors, remain.”

“Non-manufacturing sentiment will likely remain robust in Q4, but it will likely stabilize as economic growth gradually slows after the acceleration in recent quarters.”