The ISM non-manufacturing (aka ISM Services) index continues its growth cycle and improved. Markit PMI Services Index again declined but remains in growth territory.
Analyst Opinion of the ISM and Markit Services Survey
Both services surveys are in expansion – and their intensity of growth and general trends are different again this month. Markit shows this sector’s growth rate is slowing whilst the ISM Services growth rate is improving. Pretty hard to draw conclusions when one survey is improving and the other slowing.
From Econoday:
From Markit:
Service sector activity growth dips to eight-month low
- Business activity expands at weaker pace
- ▪ Prices charged inflation at record high
- The pace of job creation at joint-fastest since June 2014
- September data signalled a solid expansion of business activity across the U.S. service sector, albeit with the rate of growth easing to an eightmonth low. A downturn in business optimism about the year ahead to the weakest since December 2017 was also recorded.
- Encouragingly, new orders growth regained momentum, adding to existing pressure on operating capacity. Backlogs rose for the first time since June, and job creation was the joint-fastest for over four years as firms took on more staff to meet demand. Meanwhile, output price inflation accelerated to the quickest in the series history amid a faster rise in cost burdens. The seasonally adjusted final IHS Markit U.S. Services Business Activity Index registered 53.5 in September, down from 54.8 in August. The latest figure indicated the weakest growth since January, with the rate of expansion softening for the fourth month running. Nonetheless, the average for the third quarter of 2018 was strong overall. Anecdotal evidence cited greater demand, however, some clients were apprehensive due to reports of a sluggish housing market.
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