U.S. Services Economy Contracted Again in September, But Less Than in August -- S&P Global
By Maria Martinez
U.S. service sector activity contracted in September for a third
straight month as inflation and rising interest rates hit demand,
data from a purchasing managers survey showed Wednesday.
The S&P Global U.S. Services PMI rose to 49.3 in September
from 43.7 in August, slightly above the preliminary reading of
49.2. This signals a much slower contraction in business activity
than in the previous month, the report said. Readings below 50.0
mean a contraction in activity.
The drop in output was only marginal overall, as firms noted
that improved demand conditions led to a weaker decline, the report
said. New orders returned to growth, with domestic sales supporting
the upturn, while new export business fell further, S&P Global
"Driving this improvement is a cooling of inflationary pressures
in manufacturing supply chains, which is in turn alleviating cost
growth for goods and energy in both manufacturing and service
sectors, helping stimulate demand and allaying some concerns about
the economic outlook," said Chris Williamson, chief business
economist at S&P Global.
Despite easing, inflationary pressures in terms of firms' costs
and selling prices for goods and services remain elevated, Mr.
The rate of job creation softened to the slowest in 2022 to date
as challenges finding and retaining staff persisted, S&P Global
said. Hopes of greater client demand, a peaking of inflation and
investment in new products drove business expectations for the
year-ahead to the highest for four months.
The S&P Global U.S. Composite PMI came in at 49.5 in
September, up from 44.6 in August, signaling a modest contraction
in private sector economic activity, the data showed.
Write to Maria Martinez at firstname.lastname@example.org
(END) Dow Jones Newswires
October 05, 2022 10:17 ET (14:17 GMT)
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