US Services Sector Growth Slows

The ISM Non-Manufacturing PMI index registered 56.9 percent in September of 2015, down from 59 in August and below market expectations. It was the weakest growth in the services sector since June as business activity, new orders and prices decreased while job creation went up.
ISM | Joana Taborda | 10/5/2015 3:11:51 PM
The Non-Manufacturing Business Activity Index decreased to 60.2 percent, which is 3.7 percentage points lower than the August reading of 63.9 percent, reflecting growth for the 74th consecutive month at a slower rate. 

The New Orders Index registered 56.7 percent, 6.7 percentage points lower than the reading of 63.4 percent in August. 

The Employment Index increased 2.3 percentage points to 58.3 percent from the August reading of 56 percent and indicates growth for the 19th consecutive month. 

The Prices Index decreased 2.4 percentage points from the August reading of 50.8 percent to 48.4 percent, indicating prices decreased in September for the first time since February of this year. 

13 non-manufacturing industries reported growth in September. There has been a cooling off in the rate of growth during the month of September. Also, the trend of lower costs and little pricing power continues as reflected in the contraction of the pricing index. Overall, respondents continue to remain positive about current business conditions.

US Services Sector Growth Slows