U.S. services sector moves further into expansionary territory |
U.S. service providers expanded in September at the fastest pace since February 2023. The Institute for Supply Management (ISM)’s index of services advanced 3.4 points to 54.9 last month, taking it further away from the 50-mark separating expansion from contraction. The gauge of new orders leapt by more than six points, a sign of healthy demand for services. By contrast, the employment index edged down, suggesting some weakness in the sector’s jobs market. Twelve industries reported growth over the month, led by real estate, corporate services, and accommodation & food services. Only five reported contraction, including agriculture, fishing and wholesale trade. Relatedly, the S&P Global U.S. PMI Composite was revised lower to 54 in September from the preliminary estimate of 54.4 and August's reading of 54.6. "Encouragingly, inflows of new business in the service sector grew at a rate only marginally shy of August’s 27-month high," said Chris Williamson, chief business economist at S&P Global Market Intelligence. "Lower interest rates have already been reported by survey contributors as having buoyed demand, notably for financial services which, alongside healthcare, remains an especially strong performing sector." |
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