Mixed Signals: US and UK Service Sectors Show Moderate Slowdown

The US services sector experienced a moderate slowdown in September, with new orders falling to a nine-month low. However, the overall pace of growth remained consistent with expectations for solid economic growth in the third quarter. The Institute for Supply Management's survey also indicated that inflation in the services sector remained elevated, while employment growth slowed gradually. The resilience of the economy suggests that monetary policy could remain tight for some time. Despite the slowdown in new orders, services businesses continued to face higher prices.