U.S. Services Sector Expands in September, PMI at 54.9%
Economic activity in the U.S. services sector continued to expand for the 27th consecutive month in September according to the ISM® Services PMI® Report. The overall index registered 54.9%, a slight decline from August's 55.4%. Key indicators showed mixed trends: business activity decreased by 5.2 percentage points to 56.5%, while new orders dropped slightly but remained strong at 59.8%. Employment returned to expansion territory for the first time in three months with an index of 50.1%. The Prices Index reached a high of 74%, up from August's 72.6%, indicating continued inflationary pressure, while supplier deliveries slowed further as demand increased. The report also noted that new export orders fell below the contraction threshold for the first time in eight months at 46.9%. Thirteen industries reported growth compared to twelve in August. The data suggests a resilient but slightly cooling services sector amid ongoing inflation and slowing exports, with employment showing signs of stabilization.
Topics: Economic Activity Employment ISM Services PMI New Orders Prices Supplier Deliveries