Markit Services PMI: "Business activity growth regains momentum in October"
The October US Services Purchasing Managers' Index conducted by Markit came in at 54.8 percent, up 1.3 from the final September estimate of 53.5. The Investing.com consensus was for 54.7 percent. Markit's Services PMI is a diffusion index: A reading above 50 indicates expansion in the sector; below 50 indicates contraction.
Here is the opening from the latest press release:
The U.S. service sector reported a strong expansion in business activity in October. The rate of growth rebounded from September’s weatherrelated weakness, but was also buoyed by a sharp rise in new business. [Press Release]
Here is a snapshot of the series since mid-2012.
Here is an overlay with the equivalent PMI survey conducted by the Institute for Supply Management, which they refer to as "Non-Manufacturing" (see our full article on this series here). Over the past year, the ISM metric has been significantly the more volatile of the two.
The next chart uses a three-month moving average of the two rather volatile series to facilitate our understanding of the current trend. Since early in 2016, the ISM metric has shown stronger growth than the Markit counterpart.
Both series weakened since 2015 and saw an uptick in the latter half of 2016. The interim three-month moving average of the Markit Services index peaked in August of 2014. The ISM index peaked in September of 2015. The two were fairly closely aligned at the beginning of 2016, but they diverged early with the Markit index signaling noticeably weaker growth.
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