NEW YORK – The U.S. services sector expanded at a slower pace in October as the non-manufacturing business activity composite index was 52.9 in the month, compared to 53.0 in September, on a seasonally adjusted basis, the Institute for Supply Management reported Thursday.
Economists polled by Thomson Reuters had expected a 53.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, dipped to 57.1 from 61.9.
The employment index increased to 53.3 from 48.7.
The business activity/production index slid to 53.8 from 57.1, the new orders index was at 52.4, off from 56.5; backlog of orders slumped to 47.0 from 52.5; new export orders climbed to 54.0 from 52.0; inventories fell to 45.5 from 51.5; inventory sentiment slid to 57.5 from 59.0; the supplier deliveries index grew to 52.0 from 49.5; and imports increased to 48.0 from 47.5.
Members' general comments on business in the month included:
“Business is fairly flat, with a slight increase noted for the month.” (Health Care & Social Assistance)
“Sales are increasing slightly, but are still lower than they have been historically.” (Public Administration)
“Some slowdown in the last month.” (Finance & Insurance)
“Business is steady, with a lot of price competition at the selling end of our business.” (Agriculture, Forestry, Fishing & Hunting)
“The poor economy is creating a drag on expected revenue through the end of this year.” (Information)
“Overall, we are still growing, but we are beginning to see some cautiousness reflected in our customers.” (Wholesale Trade)
