U.S. September ISM Services - Fairly stable but with prices picking up
Contrasting a significantly improved S and P services PMI of 58.8, September’s ISM services index of 54.9 is slightly lower than expected and down from 55.4 in August, though still maintaining a fairly stable profile at a level that implies a respectable pace of economic growth.
Two components of the composite saw slowing, new orders marginally to a still strong 59.8 from 60.9, and business activity more significantly to a still far from weak 56.5 from 61.7.
Employment at 50.1 from 47.8 saw a bounce which appears more consistent with August’s non-farm payroll than September’s, though the level is barely positive, and that can be seen as consistent with September’s non-farm payroll.
Firmer delivery times at 53.2 from 51.3 complete the breakdown of the composite. This hints at inflationary pressure as does a rise in prices paid to 74.0 from 72.6, reaching the highest level since July 2022. Prices paid do not contribute to the composite.
