U.S. services sector activity raced to a 21-year high in September and companies increased hiring.
The upbeat reports on Wednesday likely keep the Federal Reserve on track to raise interest rates again in December. The U.S. central bank increased rates last week for the third time this year. Fed Chairman Jerome Powell said on Tuesday the economy’s outlook was “remarkably positive.”
“The continued strength of the surveys implies that growth is set to remain well above trend,” said Andrew Hunter, a U.S. Economist at Capital Economics in London. “That will keep the Fed raising interest rates steadily in the near term.”