The services PMI ends October at 54.8, little changed from 54.7 at the mid-month flash but noticeably higher from September's 53.5. Strength in new orders leads October's results with backlogs, rising input costs, and rising selling prices all underscoring capacity pressures for the sample.
Production also picked up pace in the month in what the report describes as a general rebound from weather-related slowing in September that saw Hurricane Florence hit the Carolinas. Hiring continued to expand though at the slowest rate in nine months as the sample continues to report trouble finding quality candidates.
The report notes that higher wages and rising borrowing costs are contributing to the rise in input costs and that traction for selling prices is the second highest in nine years of data, hints of overheating that the Federal Reserve will note ahead of this week's FOMC meeting.
Today's service results together with October's manufacturing PMI, which came in at 55.7, make for a PMI composite of 54.9 in October vs 53.9 in September and vs 55.0 in August.