US October S&P Global final services PMI 50.6 vs 50.9 prelim

<ul><li>Prior was 50.2</li><li>Composite 50.7 vs 51.0 prelim</li><li>Prior composite 50.2</li><li>business confidence rose to
the strongest in four months,</li><li>Input prices and output charges increased at
the weakest rates in three years</li><li> New orders fell for the
third month running, albeit at only a slight pace</li></ul><p>The ISM services sector survey is due at the top of the hour. The market is hardly waiting with US 10-year yields down 17 bps to 4.49%.</p><p>Chris Williamson, Chief Business Economist at S&amp;P
Global Market Intelligence, said:
</p><blockquote>"The PMI survey paints a far more subdued picture of US
economic health than the latest bumper GDP numbers,
with October seeing very muted growth of business
activity for a third successive month. A summer-surge
in service sector activity, fueled by rising consumer
spending, has stalled. Manufacturing is meanwhile
also struggling to regain momentum amid weak global
demand. As such, the survey data are broadly consistent
with GDP rising at an annual rate of around 1.5%.
</blockquote><blockquote>"An upside to the weak demand environment is the
further cooling of price pressures in October, which
brings the Fed's 2% target into focus for the first time
in three years.
</blockquote><blockquote>"The brighter outlook for inflation and hopes of a
commensurate peaking of interest rates have helped
lift business confidence in year-ahead prospects, but
new business inflows need to pick up in both services as
well as manufacturing to ensure robust growth can be
sustained as we head towards the end of the year."</blockquote>

This article was written by Adam Button at www.forexlive.com.