by Calculated Risk on 11/03/2021 10:05:00 AM
(Posted with permission). The October ISM(R) Services index was at 66.79%, up from 61.9% last month. The employment index decreased to 51.6%, from 53.0%. Note: Above 50 indicates expansion, below 50 contraction.
From the Institute for Supply Management: Services PMI(R) at 66.7%
October 2021 Services ISM(R) Report On Business(R)
Economic activity in the services sector grew in October for the 17th month in a row — with the rate of expansion setting a record for the fourth time in 2021 — say the nation’s purchasing and supply executives in the latest Services ISM(R) Report On Business(R).
The report was issued today by Anthony Nieves, CPSM, C.P.M., A.P.P., CFPM, Chair of the Institute for Supply Management(R) (ISM(R)) Services Business Survey Committee: “In October, the Services PMI(R) registered another all-time high of 66.7 percent, 4.8 percentage points above September’s reading of 61.9 percent. This figure exceeds the former all-time high of 64.1 percent in July; previous records were set in May (64 percent) and March (63.7 percent). The data quickly explains the elevated Services PMI(R) reading, as two of the four equally weighted subindexes that directly factor into the composite index set all-time highs: The Business Activity Index reached 69.8 percent, an increase of 7.5 percentage points compared to the reading of 62.3 percent in September, and the New Orders Index hit 69.7 percent, up 6.2 percentage points from last month’s figure of 63.5 percent. (The other two subindexes are Employment and Supplier Deliveries, both also in expansion territory in October.)
This was above the consensus forecast, however the employment index decreased to 51.6%, from 53.0% the previous month.