US Services Surveys "Paint A Concerning Picture" Into Year-End, Export Orders Collapse
https://www.zerohedge.com/economics/us-s...orders-collapse
BY TYLER DURDEN
THURSDAY, NOV 03, 2022 - 09:07 AM

Following the disappointing drops in US Manufacturing surveys, this morning's US Services surveys were also expected to show declines.

S&P Global's Services PMI final print for October was 47.8 (better than the flash print of 46.6 but lower than September's 49.3). This is the 4th straight month of contraction according to this signal.

ISM Services fell from 56.7 to 54.4 in October (worse then the 55.3 expected). This is the weakest print since May 2020.

Source: Bloomberg

Under the hood of the Services PMI print, new export orders collapsed and employment contracted...

Source: Bloomberg

Anthony Nieves, ISM Chair warned:

"Growth continues at a slower rate for the services sector, which has expanded for all but two of the last 153 months. The sector had a pullback in growth for the second consecutive month in October due to decreases in business activity, new orders and employment."

ISM Respondents are not exactly exuberant:

“Despite the negative inflation news, higher gas prices and concerns of a recession, our restaurant sales have been resilient during what is typically a seasonal slump. We are positive to 2019 (pre-coronavirus pandemic), and traffic is down only about 4 percent, so it’s recovering. Staffing and supply chain challenges are improving, (and we are) seeing some decline in key commodities.” [Accommodation & Food Services]

“Business remains tepid. We have a general concern that sales volumes are trending down as buyers communicate that they’re planning to buy only what they need for immediate sales.” [Agriculture, Forestry, Fishing & Hunting]-- excerpt, rest at link above --