All articles tagged with #us services sector
US services sector activity stagnated in September due to weak demand and rising input prices, with employment remaining depressed and inflation near three-year highs, complicating the Federal Reserve's decision on interest rate cuts amid tariff uncertainties and AI-driven labor market impacts.
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.
The US services sector is showing signs of contraction as demand slows, with the S&P Global Flash US Services Business Activity Index reaching an eight-month low of 50.2 in September. The composite PMI also dropped to a seven-month low of 50.1, driven by declines in the services sector. Companies cited high interest rates, inflationary pressures, and increased operating expenses as factors weighing on client demand. However, the labor market remains resilient, with job creation at its fastest level since May and businesses finding it easier to fill job openings.