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.
Data firm IHS Markit said on Friday its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, rose to a reading of 55.5 this month. That was the highest since February 2019 and was up from 54.3 in September. A reading above 50 indicates growth in private sector output.It said some manufacturers and service industry companies noted the coronavirus crisis had weighed on demand.
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 US$3 trillion rescue package early this year for businesses and the unemployed.