US services sector activity saw a rise in October with strong new orders. However, employment remained weak, indicating a sluggish job market. This comes amid economic uncertainty driven by import tariffs. The services sector, crucial to the US economy, showed mixed signals. The government shutdown also impacted economic data visibility.
The services sector accounts for more than two-thirds of US economic activity. At face value, the PMI would suggest solid economic activity at the start of the fourth quarter. But the longest government shutdown in history has caused an official economic data blackout, obscuring the economic view.
Republicans faced losses in recent elections. Former President Donald Trump attributed these defeats to his own absence from the ballot and a government shutdown. Democrats secured victories in significant races, including the New York City mayoral election and governorships in New Jersey and Virginia. Trump also called for electoral reforms, advocating for voter ID and an end to mail-in ballots.
As state lawmakers raced to pass a $1.5 billion plan to overhaul regional mass transportation, Mayor Brandon Johnson's office lost control over the CTA board.
Voters sent a strong message to President Donald Trump regarding economic concerns. Democrats secured key victories by highlighting affordability issues. Trump acknowledged the results, stating "We learned a lot." Vice President JD Vance echoed this sentiment, emphasizing the goal of making life affordable.
