US Services PMI in October
The October US services PMI (purchasing managers’ index) report indicates no change in service activity in the United States (QQQ) (SPY) in October 2017. The US services PMI stood at 55.3 in October, showing no change from September. The PMI level didn’t beat the preliminary market’s expectations of 56.0.
The services PMI has displayed gradual improvement in the past few months. However, it fell drastically in September. Let’s look at some of the key factors in October’s services PMI:
- Production volume improved at a slower rate in October 2017.
- New order growth fell marginally in October 2017, and export orders also improved at a weaker rate in October compared to September 2017.
- Employment in the services sector improved at a higher rate in October.
The service sector output remained weaker in October 2017. The slower improvement in export orders and domestic demand hampered the performance of the service sector in October 2017.
However, the US business climate remained strong for October 2017. The manufacturing sector showed a strong rise in that month.
ETF performance in October
The SPDR S&P 500 ETF (SPY), which tracks the performance of the S&P 500 Index, improved nearly 2.3% in October 2017. The iShares Russell 2000 ETF (IWM), which tracks the performance of the US small-capitalization sector, rose nearly 0.72% in October 2017.
In the next part of this series, we’ll analyze the performance of Germany’s services PMI in October 2017.