US ISM Services PMI Dips to 54.5 in October as Demand Cools

The US service sector expanded at a slightly slower pace in October, with the ISM Services PMI slipping to 54.5 from 54.9 in September and missing consensus forecasts. The index stayed above the 50 threshold for the 28th consecutive month, pointing to continued economic growth. Moderation was driven by softer underlying demand, as new orders dropped to 55.9 from 59.8 and business activity slowed to 53.8 from 56.5. Meanwhile, the employment index advanced to 51.4 from 50.1, and the prices paid index eased slightly to 73.0 from 74.0.