US: Focus on Markit PMI services index – Danske Bank

Research Team at Danske Bank, suggests that today sees the release of the US Markit PMI services index for October, which has been more accurate than the ISM non-manufacturing index in recent quarters and while we saw a big jump in the latter index in September, the Markit index rose only slightly.

Key Quotes

“This leaves us with a rather muddy picture of the current situation. If the PMI services index moves higher and closes the gap between the indices, it would be a strong signal for the services sector in Q4. We expect the services index to rise slightly higher to around 53. However, this would still be quite a weak level.”