In Huge Contrast to ISM, S&P Services PMI Has Second-Worst Quarter Since 2009 - Mish Talk


The S&P, formerly Markit, reports Business Activity Declines at Slower Pace.

 US service providers signalled a much slower contraction in business activity during September, according to the latest PMI™ data. The fall in output was only marginal overall, as firms noted that improved demand conditions led to a weaker decline. New orders returned to growth, with domestic sales supporting the upturn, as new export business fell further. The rate of job creation softened to the slowest in 2022 to date, however, as challenges finding and retaining staff persisted. Labor and input shortages sparked a renewed rise in backlogs of work. 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 seasonally adjusted final S&P Global US Services PMI Business Activity Index registered 49.3 in September, up from 43.7 in August, and broadly in line with the earlier released ‘flash’ estimate of 49.2. The latest data indicated only a slight contraction in US service sector business activity, and the slowest in the current three-month sequence of decline. That said, September data rounded off the second worst performing quarter for the sector since data collection began in 2009.  


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