US services activity gained in September, but employment slowed, PMI shows
2024.10.03 12:02
Investing.com – The U.S. services sector accelerated in September, but employment slowed significantly, consistent with an easing labor market.
The Institute for Supply Management said on Thursday that its increased to 54.9 during the month, up from 51.5 in August.
Economists had expected the figure, which was above the 50-point threshold denoting expansion, to come in at 51.7.
The figure serves as an indicator of activity in the services industry, a crucial sector that accounts for over two-thirds of the U.S. economy.
A measure of in the sector fell to 48.1, from 50.2, below the 50-point level that indicates contraction.
This will be a potential worry for the Federal Reserve which appears laser-focused on the labor market having started a rate-easing cycle last month.
A gauge of received by services businesses climbed to 59.4 last month from 53.0 in August, while a measure of paid by these companies for inputs also rose to 59.4 from 57.3. a surprise given it had been expected to dip slightly.
