The reading suggests that U.S. economic output expanded slightly on month, nudging a little higher above the 50 level marking the difference between contraction and growth. More dynamic activity should raise hopes of a "soft landing" for the U.S. economy, said Chris Williamson, chief business economist at S&P Global Market Intelligence. "The upturn in U.S. output growth signaled at the start of the fourth quarter is good news," Williamson said. The services sector expanded at a faster rate in October than the previous month, reaching 50.9 and defying expectations of a slight contraction at 49.9, per economists polled by The Wall Street Journal ahead of the release. "Tensions in the Middle East pose downside risks to growth and upside risks to inflation," he said.

Source: Wall Street Journal October 24, 2023 20:32 UTC