Data released on Wednesday showed the ISM service sector indicator retreat to 56.6 in October from 57.8. The decline was larger than expected and is the latest sign that the service sector is having a tougher time getting back on its feet than manufacturing, explained analysts at Wells Fargo.
Key Quotes:
“Despite the manufacturing ISM coming in hot at 59.3 earlier this week, the services ISM slipped to 56.6 in October.”
“The services economy is proving slower to recover in the wake of the pandemic. New orders slipped to 58.8 in contrast to the manufacturing ISM earlier this week in which orders rose to its highest level since 2004.”
“The weakest component and one which saw a large decline in October was employment which fell to 50.1, just a notch above the demarcation line between expansion and contraction.”
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