The U.S. services sector expanded at a slower pace in October as the non-manufacturing business activity composite index was 57.1 in the month, compared to 58.6 in September, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
Economists polled by Thomson Reuters had expected a 58.0 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index slipped to 52.1 from 55.2.
The employment index increased to 59.6 from 58.5.
The business activity/production index fell to 60.0 from 62.9, the new orders index was at 59.1, down from 61.0; backlog of orders declined to 51.5 from 52.0; new export orders slid to 53.5 from 57.5; inventories fell to 49.5 from 52.0; inventory sentiment dropped to 58.5 from 60.0; the supplier deliveries index fell to 49.5 from 52.0; and imports climbed to 56.0 from 52.5.
Members' general comments on business in the month included:
"Business is steady with new product launches." (Information)
"The general business outlook is favorable. Approaching 2015 with cautious optimism." (Finance & Insurance)
"Healthcare market continues to see challenges and uncertainty." (Health Care & Social Assistance)
"Economy appears to be slowing. Fears of ISIS, Ebola, etc." (Professional, Scientific & Technical Services)
"It appears that customers are beginning to engage which is producing sales. Not where we want to be, but continuing to see improvement." (Retail Trade)
"Sales very sporadic. It's up and down weekly." (Accommodation & Food Services)
"Business activity remains robust here." (Utilities)
"The past few months have been record months for us in terms of sales, but we are seeing margin pressure." (Wholesale Trade)
