ISM US October Services Index Posts Larger-Than-Expected Decline

10:07 AM EST, 11/04/2026 (MT Newswires) -- The Institute for Supply Management's US services index fell to a reading of 54.5 in October from 54.9 in September, compared with expectations for a smaller decrease to a reading of 54.8 in a survey compiled by Bloomberg, indicating a slower pace of expansion. Regional Federal Reserve bank measures and the S&P Global measure were mixed. There were decreases in the readings for business activity/production, new orders, inventories and prices, but the employment reading increased. The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices. An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.