US service sector growth improves in October

Markit’s final US services purchasing managers’ index rose to 54.8 in October from 52.3 in September, above the 50 mark that separates contraction from expansion.

The rate of expansion was the steepest for almost a year.

Adjusted for seasonal influences, the final US Composite PMI Output Index came in at 54.9 from 52.3 the previous month, marking the strongest upturn in private sector output since November 2013.

Chris Williamson, chief business economist at IHS Markit, said: “Indications of stronger economic growth, solid job creation, rising prices and improved business confidence all pave the way for the Fed to hike interest rates again by the end of the year.

“The surveys are signalling the largest monthly rise in business activity for nearly one year after inflows of new orders surged higher in October.”