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ISM non-manufacturing PMI comes in at 52.4 vs. 50.5 estimated
11/5/2025, 3:58:48 PM
Economic Summary
- ISM Services headline came in at 52.4, well above expectations and sequentially stronger, indicating the services sector is expanding and supporting overall economic momentum.
- ISM Prices Paid jumped to 70.0, the highest since October 2022, implying elevated input-cost inflation that can feed through to broader CPI and push market interest rates higher.
- ISM New Orders printed 56.2, the best in about a year, signaling robust demand which could translate to stronger revenues for companies and upward pressure on hiring.
- ADP employment missed expansion (48.2) but was better than the prior 47.2 and the best since May, showing a still-weak but improving labor market with mixed implications for consumer spending.
- Market reaction: the 10-year Treasury yield moved up toward roughly 4.14%, reflecting a repricing for tighter policy expectations and higher inflation risk, which affects equities, fixed income, and borrowing costs.
Bullish
- ISM services headline (52.4) shows service-sector expansion and demand resilience.
- New orders at 56.2 indicate strong near-term demand for companies.
- ADP improving (48.2) suggests labor conditions stabilizing, supporting consumption.
Bearish
- ISM 'prices paid' at 70.0 signals elevated inflationary pressures.
- Rising yields (~4.14%) increase financing costs and pressure equities and bonds.
- Sustained high input prices could squeeze corporate margins and profit growth.
People mentioned
Rick SantelliCarlDavid Faber