US Business Activity Rebounds in October as Manufacturing Expands, Services Accelerate

U.S. business output ticked higher in October as manufacturing pulled out of a 5-month contraction on increased new orders. Services activity also accelerated modestly.

S&P Global's Composite PMI rose to 51.0 in October, indicating economic expansion after contraction in September. It was the highest level since July.

Manufacturing PMI reached 50, ending a shallow contraction since May. New orders rose for the first time in 6 months.

Services PMI hit a 3-month high of 50.9 in October vs 50.1 in September. Service cost inputs grew at slowest pace in 3 years.

Inflation pressures easing with service price gauge close to pre-pandemic level, consistent with inflation dropping near Fed's 2% target.