October PMI Composite hits 3-month high amid stronger client demand

• October U.S. PMI Composite Index (Final): 57.6 vs. 57.3 consensus and 55.0 prior.
• The IHS Markit US Composite PMI Output Index* posted 57.6 in October, up from 55.0 in September to signal the fastest rise in private sector output since July. Although manufacturing production continued to be constrained by supply issues, the overall expansion was supported by a sharper service sector upturn.
• Contributing to the overall expansion was a faster increase in new business. The rise was supported by sharp upticks in new orders at services providers and manufacturers. Foreign client demand fared less well, however, as goods producers registered only a fractional expansion and service sector firms saw a further contraction.
• Services Index: 58.7 vs. 54.9 consensus, 58.2 prior
• The latest expansion was sharp overall and the quickest since July. The upturn was faster than the series average, with firms linking the increase to greater client demand and a further rise in new business.