US services activity expanded at a slower pace in October 2026, as the ISM Services PMI declined to 54.5 from September's 54.9, according to figures released on November 4. The reading also fell short of the 54.8 market forecast.
The result delivered a negative economic surprise of 0.3 index points, alongside a 0.4-point monthly decline, signaling softer-than-expected momentum in the services sector.
Despite the slowdown, the index remained above the 50-point threshold, indicating that business activity continued to expand rather than contract. The latest reading therefore points to moderating growth, not an outright deterioration into contraction.
The weaker result could pressure the US dollar and Treasury yields if investors interpret it as supporting Federal Reserve easing expectations. Gold could potentially benefit from lower yields, although the actual market reaction remains unverified.
Potential pressure on USD and US Treasury yields if slower services expansion reinforces Fed easing expectations. Gold could benefit from lower yields.
