Investing.com - The rate of growth in the economy's service sector slowed in October, after having hit record levels in the prior month, even as the expansion continued for its 105th consecutive month.
The Institute of Supply Management said its non-manufacturing purchasing managers' index fell to 60.3 in October, from 61.6 the previous month.
Economists had forecast a reading of 59.3.
A reading above 50 for the index indicates expansion in the sector, and a reading below 50 signals contraction.
“The non-manufacturing sector has again reflected strong growth despite a slight cooling off after a record month in September,” ISM chair Anthony Nieves explained in the report. “There are continued concerns about capacity, logistics and tariffs,” he added but noted that “respondents are positive about current business conditions and the economy.”
Among the subindices, the Non-Manufacturing Business Activity Index decreased to 62.5 last month, 2.7 points below September’s reading of 65.2. Although at a slower rate, it was still the 111th consecutive month of growth.
Economists had forecast a drop to 64.5.
The New Orders Index registered 61.5 in October, 0.1 points lower than the reading of 61.6 in the previous month.
The Employment Index fell October 2.7 points to 59.7 last month from September’s reading of 62.4
The Prices Index decreased 2.5 points to 61.7 in October from the prior month’s reading of 64.2.