Stocks rise cautiously as polls show US election tied

According to the latest S&P PMI, October saw:

• Slowest business growth since November 2023

• Weak job growth but stronger export sales growth

• Employment fell for the first time in 2024

“The expectation of clarity on government policy ahead of the autumn budget is widely reported to have weighed on business confidence and spending,” said Tim Moore, director of economics at S&P Global Market Intelligence.

“Broader geopolitical concerns and the upcoming US election have also added to the sense of wait and see regarding business investment decisions in October. At the same time, pressure on the cost of living remained a constraint on household spending.”

“Higher wages led to another month of strong input cost inflation across the service sector. Headline inflation rose to a three-month high but remained well below the average in the first half of 2024.

“Meanwhile, output inflation is holding close to the 43-month low seen in September, with the latest data consistent with a long-term trend of slowing price pressures across the services sector.”