EL7.AI
Macro EconomyMedium•4 November 2026•
1 min read

US Services Sector Growth Slows in October as Inflationary Pressures Rise

Key Facts

1The US ISM Services PMI recorded 54.5 in October, missing the expected 54.8 and down from the previous 54.9.
2The final S&P Global US Services PMI was revised down to 56.1 from a preliminary reading of 57.9.
3Average prices charged for services rose at one of the fastest rates seen over the past four years.

The US ISM Services PMI recorded 54.5 in October, missing the expected 54.8 and declining from the previous reading of 54.9. According to reports from investinglive.com, the final S&P Global US Services PMI was also revised downward to 56.1 from a preliminary figure of 57.9. This deceleration indicates a slower pace of expansion in the sector that constitutes the bulk of US economic activity.

Inflationary pressures within the sector intensified as average prices charged for services rose at one of the fastest rates seen over the past four years. Regarding market performance, SPGI closed at $466.03 on November 3, 2026, prior to the release of these figures which highlighted reduced business confidence due to interest rates and political uncertainty. These data points follow the Atlanta Fed GDPNow estimate of 3.3% recorded on October 31, 2026.

Markets are awaiting the Nonfarm Payrolls report on November 6, 2026, which will provide further clarity on the labor market after JOLTs Job Openings reached 7.523 million on November 3, 2026. Investors will also monitor Initial Jobless Claims scheduled for November 5, 2026, to assess the impact of the services slowdown on employment.