PMI Output Index up in October despite delta

U.S. CompositePurchasing Managers’ Index; PMI Output Index, which tracks the manufacturing and services sectors, has rebounded to a reading of 57.3 in the first half of October from 55.0 in September. A reading above 50 indicates growth in the private sector.

The service sector of the U.S. economy has sped up in October after hitting a severe bump caused by the coronavirus delta variant a month earlier.

Manufacturers also rapidly expanded activity, but ongoing labor shortages and supply bottlenecks acted as a downtrend drag on growth.

Data firm IHS Markit, said Friday, that a survey of senior business executives in service oriented companies, such as retailers and banks, rebounded to a three-month high of 58.2 from 54.9 in September.

U.S. business activity increased solidly in October, suggesting economic growth has held uptrend at the start of the Q4 as COVID-19 infections subsided, though labor and raw material shortages held back manufacturing.