October data indicated a robust and accelerated expansion of U.S. private sector business activity. The upturn was supported by the fastest rise in manufacturing production for eight months, alongside another robust increase in service sector output.

The seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index rose to 55.7 in October, from 54.8 in September. As a result, the latest reading signalled the fastest upturn in private sector output since January.

However, growth of overall new business volumes moderated further from the two-year peak seen in August. This reflected a slowdown in the service sector, as manufacturing firms reported the strongest rise in new work since March.