US Services and Composite PMI Readings Fall Short of Forecasts in October Final Print

The final October readings for US business activity came in below both expectations and preliminary estimates. The S&P Global Services PMI printed at 56.1, missing the forecast of 57.9 and falling short of the 57.9 flash estimate, while also declining from September's 58.8 reading. The Composite PMI, which combines services and manufacturing, registered 55.9, below the 57.3 forecast and the 57.6 flash estimate, and down from 58.4 in September.

Although both readings remain comfortably above the 50 threshold that separates expansion from contraction, the downward revisions from flash estimates and the sequential pullback from September signal a cooling in the pace of US service-sector growth heading into the final quarter of 2026.

In Canada, the services sector remained in contraction territory for another month. The S&P Global Services PMI edged down to 48.1 in October from 48.3 in September, and the Composite PMI fell to 48.1 from 48.7, keeping both measures below 50 and pointing to continued weakness in the Canadian economy.