U.S. service sector continues to grow at stronger rate in October

The U.S. service sector business activity has continued to grow at a stronger rate in October. The seasonally adjusted IHS Markit Flash U.S. Services PMI Business Activity Index rose slightly to 55.9 in October from September’s 55.3. Furthermore, the latest reading has hinted at the second-fastest rate of growth since November 2015. Survey respondents have linked the increasing business activity to rebounding domestic economic conditions and increased client spending.

The pace of job creation at service providers has eased a bit in October. Some firms have cited weaker new business growth, along with subdued pressures on operating capacity. Service sector companies continue to be positive about their growth prospects for the year ahead, and the degree of optimism improved from September’s seven-month low.

Input cost inflation eased to its least marked since March. This has added to weaker prices charged inflation throughout the service economy, with the latest rise in average charges the slowest for six months.

At 16:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 69.0078. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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