{"id":440739,"date":"2026-10-23T21:40:08","date_gmt":"2026-10-23T14:40:08","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/us-sp-global-flash-october-services-pmi-57-9-vs-58-0-expected-440739\/"},"modified":"2026-10-23T21:40:08","modified_gmt":"2026-10-23T14:40:08","slug":"us-sp-global-flash-october-services-pmi-57-9-vs-58-0-expected","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/us-sp-global-flash-october-services-pmi-57-9-vs-58-0-expected-440739\/","title":{"rendered":"US S&amp;P Global flash October services PMI 57.9 vs 58.0 expected"},"content":{"rendered":"<div>\n<ul>\n<li>Prior was 59.8<\/li>\n<li>Manufacturing 56.0 vs 55.5 expected<\/li>\n<li>Prior manufacturing 57.0<\/li>\n<li>Composite 57.6 vs 58.4 prior<\/li>\n<li>selling prices rose at the sharpest<br \/>\nrate since August 2022<\/li>\n<li>New orders\u00a0highest in over four-and-a-half<br \/>\nyears<\/li>\n<li>Business output expectations for the 12 months ahead cooled<br \/>\ncompared to September but were still the second highest<br \/>\nseen this year<\/li>\n<\/ul>\n<p>One of the big surprises last month &#8212; and one that the market took as a hawkish signal at time time &#8212; was the jump in this survey. Employment was at the strongest since June 2022 and input cost inflation at the highest since Oct 2022.<\/p>\n<\/p>\n<p>Chris Williamson, Chief Business Economist at S&amp;P<br \/>\nGlobal Market Intelligence:\n<\/p>\n<blockquote><p>\u201cOctober\u2019s flash PMI data indicate that the US economy<br \/>\ncontinues to boom at the start of the fourth quarter. The<br \/>\noutput readings from the survey are consistent with GDP<br \/>\ngrowing at a 5% annualized rate after a 4% expansion<br \/>\nwas signalled for the third quarter. Especially healthy<br \/>\ncorporate earnings and profits are also indicated, and<br \/>\nhiring has surged as companies seek to boost capacity to<br \/>\nfulfil stronger customer demand.\n<\/p><\/blockquote>\n<blockquote><p>\u201cIf the reopening of the economy after COVID is excluded,<br \/>\nrecent months have seen the best growth spell for US<br \/>\nbusinesses since early 2015.<\/p><\/blockquote>\n<blockquote><p>\n\u201cHowever, cost pressures remain a key concern, notably<br \/>\nas the renewed surge in oil prices reverberates through to<br \/>\nimpact a wide variety of goods and services. Supply chain<br \/>\nbottlenecks have meanwhile intensified, and order book<br \/>\nbacklogs are growing, making it easier for companies<br \/>\nto pass higher costs on to customers. The result is the<br \/>\nsharpest increase in selling prices for over four years to<br \/>\na pace that indicates consumer price inflation is likely to<br \/>\nrise further above the Fed\u2019s target in the coming months.\u201d<\/p><\/blockquote>\n<p dir=\"ltr\">If the Fed took this report seriously, they would be hiking next week. In theory, it&#8217;s a good forward-looking indicator at the front edge of leading indicators but in practice, it&#8217;s been mediocre at predicting economic momentum in the post-covid period.<\/p>\n<p dir=\"ltr\">\n<p dir=\"ltr\">For background, the S&amp;P Global publishes flash estimates of its US Purchasing Managers\u2019 Indexes for manufacturing and services each month at 9:45 am ET, usually about a week before the month ends. The flash readings are based on roughly 85% of survey responses, making them one of the earliest snapshots of US business conditions. Final figures follow in the first days of the next month and rarely differ much from the flash.<\/p>\n<p dir=\"ltr\">The indexes are diffusion measures built from surveys of purchasing managers at private-sector companies. A reading above 50 indicates expansion from the prior month and below 50 signals contraction. The manufacturing PMI is a composite of five sub-indexes: new orders, output, employment, suppliers\u2019 delivery times and stocks of purchases. The services headline is the business activity index, based on a single question about activity levels. The two feed into a composite output index, which gives a broad read on private-sector growth.<\/p>\n<p dir=\"ltr\">The sub-indexes are often more revealing than the headlines. Input prices and output prices, or prices charged, offer an early gauge of cost pressures and how much firms are passing them on to customers, which makes them closely watched for inflation signals. Employment, new orders, export orders and business expectations add detail on demand and hiring.<\/p>\n<p dir=\"ltr\">The S&amp;P Global PMIs tend to move markets less than the ISM surveys, which have a longer history and a larger following, though the two sometimes diverge. Their main advantage is timing and comparability. Flash PMIs for the eurozone, UK, Japan, Australia and India land the same day, giving traders a synchronized look at the global economy and letting them judge US momentum against other major economies.<\/p>\n<p>                            This article was written by Adam Button at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Prior was 59.8 Manufacturing 56.0 vs 55.5 expected Prior manufacturing 57.0 Composite 57.6 vs 58.4 prior selling prices rose at the sharpest rate since August 2022 New orders\u00a0highest in over four-and-a-half years&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-440739","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440739","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=440739"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/440739\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=440739"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=440739"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=440739"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}