US ISM Non-manufacturing: moderate growth, rising prices - Wells Fargo

According to analysts from Wells Fargo, despite the decline that showed the ISM Non-manufacturing index in October (56.0 to 54.8), it still suggests that the service sector continues to expand “at a healthy clip”. 

Key Quotes: 

“After sizeable swings in August and September, the ISM nonmanufacturing settled down to 54.8 in October. October’s print puts the index a tick above its 6-month average (54.7) and indicates that through the noise of the past few months, the service sector continues to expand at a moderate rate.”

“The largest pullback among sub-indices was the 4.1 drop in employment, although at 53.1 the index remains above its six-month average. With both ISM employment readings now in hand, we reaffirm our call for tomorrow’s nonfarm payroll report to show an increase of 185,000 in October.”

“Respondents indicated growing price pressures, with the prices paid index rising to its highest level in more than two years.”