US: ISM Services PMI jumps to record high of 66.7 in October vs. 62 expected

• ISM Services PMI rose to a new all-time high in October.
• US Dollar Index holds in the positive territory above 94.00.

The business activity in the US service sector continued to expand at a record-setting pace in October with the ISM Services PMI jumping to 66.7 from 61.9 in September. This reading beat the market expectation of 62 by a wide margin.

Further details of the publication revealed that the Prices Paid Index rose to 82.9 from 77.5 and the Employment Index retreated to 51.6 from 53. Finally, the New Orders Index improved to 69.7 from 63.5.

Commenting on the survey, "in October, strong growth continued for the services sector, which has expanded for all but two of the last 141 months," said Anthony Nieves, Chair of the ISM Services Business Survey Committee. "However, ongoing challenges — including supply chain disruptions and shortages of labor and materials — are constraining capacity and impacting overall business conditions."

Market reaction

The greenback preserves its strength after this report and the US Dollar Index was last seen rising 0.1% on the day at 94.18.