US ISM non-manufacturing dropped to 60.3 in October, down from 61.6 but beat expectation of 59.5. Employment index dropped -2.7 to 59.7. ISM noted the reading respresnets “continued growth in the non-manufacturing sector at a slower rate.”And, the sector “again reflected strong growth despite a slight cooling off after a record month in September”. However, there are “continued concerns about capacity, logistics and tariffs. ”
Some quotes from the respondents:
- “Tariffs are beginning to impact business. We ask our suppliers to hold pricing for six months, but we are experiencing difficulties.” (Construction)
- “Wrapping up fiscal year budgets [and] seeing modest increases in volume and spend. Some price increases due to tariffs on computers/peripherals.” (Finance & Insurance)
- “It has been very difficult to make decisions due to instability brought by the latest trading dispute. In this environment, clients tend to postpone capital-expenditure decisions.” (Mining)
- “The promotional-products trade continues to stay strong going into the end of the year. This reflects the overall macroeconomics of how the economy is doing thus far. We have not yet begun to see the impacts on prices due to the additional tariffs against China. We anticipate that price increases may start to work into the supply chain early in the first quarter.” (Management of Companies & Support Services)
