By Lucia Mutikani

WASHINGTON (Reuters) -U.S. services sector activity picked up in October amid a solid increase in new orders, but subdued employment pointed to lackluster labor market conditions against the backdrop of economic uncertainty stemming from tariffs on imports.

The Institute for Supply Management said its nonmanufacturing purchasing managers index rose to 52.4 last month from 50.0 in September. Economists polled by Reuters had forecast the services PMI climbing to 50.8. The services sector accounts for more than two-thirds of U.S. 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.

The no

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