The U.S. services sector expanded at a slightly faster pace in October as the non-manufacturing business activity composite index was 55.4 in the month, compared to 54.4 in September, on a seasonally adjusted basis, the Institute for Supply Management reported Tuesday.
Economists polled by Thomson Reuters had expected a 54.0 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index dipped to 56.1 from 57.2.
The employment index increased to 56.2 from 52.7.
The business activity/production index rose to 59.7 from 55.1, the new orders index was at 56.8, down from 59.6; backlog of orders fell to 50.0 from 50.5; new export orders slid to 53.0 from 57.5; inventories remained 54.5; inventory sentiment grew to 62.5 from 62.0; the supplier deliveries index decreased to 49.0 from 50.0; and imports rose to 55.0 from 51.5.
Members' general comments on business in the month included:
"Sales continue to increase slightly over the same period last year." (Public Administration)
"We experienced an increase in the level of interest in our services, job awards and professional services placements." (Professional, Scientific & Technical Services)
"Signs of improvement and stability are encouraging; however, the political environment and the cost of ObamaCare are causing a retrenching as costs escalate and margins shrink." (Retail Trade)
"Economy continues to be a challenge with consumer fear as a result of the government partial shutdown." (Accommodation & Food Services)
"Economic conditions continue to improve slowly in spite of government policy. Housing continues to lead." (Management of Companies & Support Services)
"Business activities are stable compared to previous month." (Finance & Insurance)
