US economic growth loses momentum
Preliminary Purchasing Managers' Index (PMI) data for October showed that economic growth in the United States is losing momentum.
The Composite PMI declined from 58.4 in the previous month to 57.6, matching market expectations. The Services PMI fell from 58.8 to 57.9, slightly below the forecast of 58. The figures indicate that US economic activity continues to expand, although the pace of growth has slowed.
Meanwhile, the Manufacturing PMI edged up from 55.9 to 56.0 in October, exceeding market expectations of 55.5. The increase suggests that activity in the manufacturing sector continues to strengthen. PMI readings above 50 indicate an expansion in economic activity, while the declines in the services and composite indices point to a modest slowdown in growth momentum. The latest figures are also significant for the Federal Reserve's (Fed) monetary policy outlook.
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