Rising Energy Costs and AI-Related Expenses Weigh on US Service Firms

The US services sector Purchasing Managers' Index (PMI) declined to 54.50 in October, down from 54.90 in September and below analysts' expectations of 54.80. Nevertheless, it remained above the 50-point threshold, signaling continued growth in the sector.

Meanwhile, companies faced rising energy costs and higher prices for memory chips used in artificial intelligence, compounded by ongoing supply constraints.

Although the prices-paid index fell from 74 to 73, it remains at an elevated level, reflecting persistent inflationary pressures on the US services sector.