New Orders Surge, Costs Rise | S2 E093 | 11-05-25

The October ISM Services index is back in expansion territory—coming in above 50—with six out of ten categories rising and new orders leading the charge (likely boosted by data-center demand in the commentary). Business activity jumped, employment is still in contraction but improved, and we’re not seeing shrinking headcount alongside a backlog—hinting at some labor-market equilibrium.

The catch: prices paid just moved to their highest level since October 2022. That’s the inflation channel the Fed watches closely. With ADP showing a modest October improvement and the labor market not collapsing, elevated input costs could feed into CPI/PCE once those reports finally print after the record-long government shutdown.

In this episode:

• ISM Services pops back above 50 (expansion)
• New orders strength—data-center demand in the mix
• Employment still soft, but stabilizing
• Prices paid spike—potential inflation bleed-through
• What this combo could mean for the Fed’s next steps

Subscribe, tap the bell, and share. For past episodes and more, visit marketswithmegan.fm.

https://youtu.be/xvqGfsWRwAA

Disclaimer: material was prepared by Verdence Capital Advisors, LLC (“VCA”). VCA believes the information and data in this document were obtained from sources considered reliable and correct and cannot guarantee either their accuracy or completeness. VCA has not independently verified third-party sourced information and data. Any projections, outlooks
or assumptions should not be construed to be indicative of the actual events which will occur. These projections, market outlooks or estimates are subject to change without notice. This material is being provided for informational purposes only and is not intended to provide, and should not be relied upon for, investment, accounting, legal, or tax advice. Past performance is not a guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance
that the future performance of any specific investment, investment strategy, or product or anynon-investment related content, made reference to directly or indirectly in these materials will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. You should not assume that any
discussion or information contained in this report serves as the receipt of, or as a substitute for, personalized investment advice from VCA. Due to various factors, including changing market conditions and/or applicable laws, the co...