04.10.202315:15:00UTC+00U.S. Services Index Indicates Modestly Slower Growth In September

Reflecting slower rates of growth in new orders and employment, the Institute for Supply Management released a report on Wednesday showing a modest slowdown in the pace of growth in U.S. service sector activity in the month of September.

The ISM said its services PMI edged down to 53.6 in September from 54.5 in August, although a reading above 50 still indicates growth. The modest decrease matched economist estimates.

The slight pullback by the headline index came as the new orders index slumped to 51.8 in September from 57.5 in August, while the employment index dipped to 53.4 in September from 54.7 in August.

Meanwhile, the business activity index rose to 58.8 in September from 57.3 in August, indicating a modestly faster pace of growth.

The prices index for September was unchanged from the previous month at 58.9, suggesting prices paid by services organizations for materials and services increased for the 76th consecutive month.

On Monday, the ISM released a separate report showing a modest slowdown in the pace of contraction in U.S. manufacturing activity in the month of September.

The ISM said its manufacturing PMI rose to 49.0 in September from 47.6 in August, although a reading below 50 still indicates a contraction. Economists had expected the index to inch up to 47.7.