ISM US October Services Index Posts Larger-Than-Expected Gain

10:10 AM EST, 11/05/2025 (MT Newswires) -- The Institute for Supply Management's US services index rose to a reading of 52.4 in October from 50.0 in September, compared with expectations for a smaller increase to a reading of 50.8 in a survey compiled by Bloomberg as of 7:35 am ET.

The index indicated expansion, which is in line with the Richmond Fed and S&P Global measures but in contrast with the other services data already released that suggested contraction.

There were gains in the readings for production, new orders, employment and prices, but a decline in the order backlogs reading.

The monthly national services reading from the Institute for Supply Management is reported as a headline index, with readings above 50 indicating expansion and those below 50 indicating contraction. Component indexes measure new orders, production, employment, and prices.

An increase in the index further above 50 is considered a sign of a strong US services sector and would be a positive for service-sector stocks. Rising prices would normally be a negative for both stocks and bonds.

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