Purchasing Managers’ Index – Services, October 2014
Services PMI climbs to 57.7 in October: Orders on the rise in the service industry
- The purchasing managers’ index for the service sector (Services PMI) rose from 55.6 in September to 57.7 in October. The Services PMI remained above 50 with all subindices landing in the growth zone, which indicates a continued recovery in the service sector. Based on a three-month moving average, growth has been stable in 2014.
- The sub-index for new orders climbed to 59.6 in October, rising by 3.4 index points compared to September. This increase made the largest positive contribution (1.2 points) to the Services PMI. As with new orders, rising delivery times indicate strong demand. The sub-index for suppliers’ delivery times rose from 50.7 to 53.1 in October.
- The employment sub-index rose by 1.3 points in October, to 56.3. The increase in hiring is most likely a result of strong orders, ramped up production and positive production plans. The index for planned production dropped somewhat this month, although it remained high at 67.4, while the production sub-index rose to 59.8.
- The index for prices of suppliers’ intermediate goods increased in October to 54.2, which is the highest level so far this year. The three-month moving average starting in the summer of 2014 shows a rising short-term trend.
PMI-Services, October 2014