US September service sector data from Markit
- Prelim was 54.4
- Prior was 55.1
- Composite 55.0 vs 54.5 prelim
- Cost pressures built for a second month running
as input prices rose at a steep rate - Prices composite 76.2 vs 76.3 prelim
- Business expectations regarding the outlook for activity over
the coming 12 months improved during September - Full report (pdf)
Both the services and composite indexes were revised higher. That’s a good sign for the ISM data at the top of the hour.
Commenting on the latest survey results, Chris Williamson,
Chief Business Economist at IHS Markit, said:
“The service sector showed further signs of struggling amid
the COVID-19 Delta wave in September. While business
activity is growing at a rate in line with the long-run
average seen prior to the pandemic, this represents a
marked downshifting from the spring and summer months.“High virus case numbers have not only subdued demand
for many services, notably among consumers in the
hospitality sector, the pandemic continues to hit the labor
market both in terms of staff absences amid the spread
of the virus and low labor market participation rates
meaning it is difficult to fill vacancies.“With COVID-19 cases numbers appearing to have peaked
early in September, the situation in terms of demand
and labor supply should start to improve as we head into
the fourth quarter; a sentiment supported by business
optimism rising in the service sector to the highest since
June and an unprecedented strong build-up of back
orders.”