An ISM barometer of U.S. business conditions at companies such as retailers and restaurants fell to 54.4% in October and touched the lowest level since the U.S. economic lockdowns in 2020. This is the lowest reading since May 2020, when the index registered 45.2 percent.
The Business Activity Index registered 55.7 percent, a decrease of 3.4 percentage points compared to the reading of 59.1 percent in September.
The New Orders Index figure of 56.5 percent is 4.1 percentage points lower than the September reading of 60.6 percent. Growth continues at a slower rate for the services sector, which has expanded for all but two of the last 153 months.
The sector had a pullback in growth for the second consecutive month in October due to decreases in business activity, new orders and employment.
Source: MarketWatch, ISM