U.S. business activity picks up in October: IHS Markit

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U.S. business activity increased to a 20-month high in October, but the pace of new business growth and new orders eased slightly amid the lingering COVID-19 pandemic and caution ahead of the Nov. 3 presidential election.

FILE PHOTO: People visit the Destiny USA mall during the reopening, as the coronavirus disease restrictions are eased, in Syracuse, New York, U.S., July 10, 2020. REUTERS/Maranie Staab

It said some manufacturers and service industry companies noted the coronavirus crisis had weighed on demand. The survey found other companies said a number of clients were holding back on placing orders until after the fiercely contested race to the White House between Republican President Donald Trump and former Vice President and Democratic Party candidate Joe Biden.

Despite the reported pick-up in business activity, economists are predicting slower economic growth in the fourth quarter after what is believed to have been a record performance in the third quarter, thanks to a more than $3 trillion rescue package early this year for businesses and the unemployed. The survey’s flash composite new orders index dipped to 54.3 this month from a reading of 54.8 in September.The survey’s flash services sector PMI rose to 56 this month, a 20-month high, from a reading of 54.6 in September.

 

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