A positive October for the service sector
The service sector in the United States showed signs of recovery in October, with the ISM index rising to 56 points, compared to 54.9 in September. This increase represents the fastest growth in the last two years, suggesting a general improvement in economic activity. The ISM index, which measures the performance of the tertiary sector, is a crucial indicator for understanding the health of the US economy, since the service sector represents a significant part of the national GDP
.
Analysis of new orders and production
Despite the general increase in the index, the figure for new orders fell slightly, falling by 2.0 points to 57.4. However, this value remains high, indicating robust demand in the sector. Production, on the other hand, saw a decrease of 2.7 points, to 57.2. These data suggest that, although there is some volatility, the sector continues to maintain a good level of activity
.
Employment and prices: positive signs
Another interesting aspect is employment, which jumped by 5 points, reaching a 14-month high of 53. This increase is a positive sign, as it indicates that companies are hiring more, thus contributing to the economic recovery. In addition, the index of prices paid, which acts as a measure of inflation, fell by 1.3 points to 58.1, returning to relatively low levels compared to the pre-pandemic period. This could suggest a stabilization of costs, a crucial element for the sustainability of economic growth
.
Future Prospects and Impact of the Federal Reserve
The report highlights the excellent state of health of the tertiary sector, which could further benefit from the expected reduction in interest rates by the Federal Reserve. A more accommodative monetary policy could further stimulate growth, encouraging investment and consumer spending. Analysts remain optimistic about the sector’s ability to continue expanding, backed by resilient demand and
favorable economic conditions.