According to S&P Global’s month-over-month data, things are looking up for the US economy. The Composite Purchasing Managers’ Index (PMI) shot up to 54.8 in October, up from 53.9 in September. This growth signals a widespread growth in economic activity, especially in the services sector. The Services PMI, on the other hand, dipped to 53.5 from 54.2 last month.
The S&P Global Services PMI is an important gauge, measuring the level of business activity in the US services sector. This monthly release is always one of the most informative windows into economic trends and is perhaps the most hotly anticipated economic release by economists and investors.
Services PMI and Economic Indicators
At 53.5, the Services PMI reading indicates growth is still present, but not at the strong pace we’ve experienced in the months prior. An ISM reading above 50 indicates expansion, which is typically considered bullish for the US Dollar (USD). On the other hand, a reading under 50 would represent a contraction in service activity.
The Composite PMI has bounced back surprisingly well, rising to 54.8. This increase underscores a more optimistic outlook within the manufacturing and services industries. The Manufacturing PMI crept up to 52.2, a sign that manufacturing in the country is continuing to build up positive growth momentum.
The preliminary data for the October S&P Global Purchasing Managers’ Index (PMI) is scheduled for release on October 24, 2025, at 13:45 GMT. Analysts will be particularly on the lookout for more clues to a trend that could affect GDP, employment, and inflation outlooks.
Insights from Industry Experts
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, had this to say about the survey’s findings. He stated,
“October’s flash PMI data point to sustained strong economic growth at the start of the fourth quarter, with business activity picking up momentum across both manufacturing and services despite some reports of businesses being adversely impacted by the government shutdown.”
Williamson’s analysis highlights the resilience within the US economy despite challenges such as government shutdowns that could potentially hinder business operations.
Implications for Future Economic Activity
For both the public and private sectors, S&P Global’s PMI data is an indispensable resource for predicting changes in economic direction. The survey responses reflect changes in business activities compared to previous months and can forecast important economic indicators such as Gross Domestic Product (GDP) and industrial production.
These are difficult times for commerce. The PMI readings will be key to determining economic policy and investor sentiment going forward. Recent data indicates that the road ahead is full of challenges. Yet, the services index is likely to stay positive overall in signaling continued expansion, giving further cause for optimism.