US economy remains strong in October, says ISM services survey

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Numbers: Leaders of service-oriented companies, such as banks, hotels and hospitals, said the economy remained solid in October, according to a new survey.

The non-manufacturing index set by the Institute for Supply Management slipped to 60.3 last month from 61.6 in September, its highest level in 21 years. The September reading, however, was the second highest in the history of an index dating back to 1997.

Figures above 50% are considered positive for the economy and any 55% exceedance is considered exceptional.

What happened: Almost all major service industries developed in October. Education was the only one to decline, but it was linked to the beginning of studies in the fall.

New orders remained virtually unchanged and remained at a very high level. Employment growth has slowed somewhat, but companies continue to hire.

The main complaints concerned the uncertainty of US tariffs, the difficulty of finding sufficient transportation to ship the goods, and other constraints on production.

The index is based on a survey of executives who order raw materials and other supplies to their companies. The indicator tends to increase or decrease along with the health of the economy.

Lily: Wages increase fastest in nine years with 250,000 jobs created in October in the United States

Big picture: As the latest ISM survey shows, the United States still displays high performance and a good holiday season promises promising.

What are they saying? "The business has been strong," said an executive at a retailer. "The continuous dynamics observed last month. We expect sales to remain strong for the rest of the year. "

"Hiring becomes a problem," said a senior professional firm, "because finding qualified staff is increasingly difficult over time."

Read also: This is the perfect time for Americans aged 25 to 54.

Market reaction: The Dow Jones Industrial Average

DJIA, + 0.40%

opened higher in Monday's trades but the S & P 500

SPX, + 0.13%

lagging behind.

The 10-year Treasury yield

TMUBMUSD10Y, + 1.55%

increased to 3.19%.