US: Markit Services PMI improves to 58.2 in October vs. 55.1 expected

• Markit Services PMI and Composite PMI surpassed expectations in October.
• US Dollar Index continues to push lower toward 93.50.

The business activity in the US service sector expanded at a more robust pace than expected in early October with IHS Markit's Services PMI rising to 58.2 (preliminary) from 54.9 in September. This reading surpassed analysts' estimate of 55.1.

Meanwhile, the Composite PMI improved to 57.3 from 55 and came in better than the market consensus of 54.7.

Commenting on the data, "October saw resurgent service sector activity as COVID-19 case numbers continued to fall, marking an encouragingly strong start to the fourth quarter for the economy," said Chris Williamson, Chief Business Economist at IHS Markit. "Hiring has likewise picked up as firms have been encouraged to expand capacity to meet rising demand." 

Market reaction

The US Dollar Index edges lower after this report and was last seen losing 0.2% on the day at 93.57.