ISM non-manufacturing PMI falls more than expected

Posted on October 6, 2015

We got two data points on the services sector, which showed that it’s still in good shape and there is jobs growth.

ISM’s non-manufacturing index for September came in at 56.9; economists had estimated it at 57.5, down from 59.0.

There was growth among most industries, as the sector rose for a 68th straight month, according to ISM. Employment grew at a faster rate.

Markit Economics’ services purchasing managers’ index (PMI) report showed that the sector is still robust.

The index for September was 55.1. Economists had estimated a reading of 55.6, unchanged from August.

The report showed that hiring remained strong, although it is lower year-on-year. Business activity and incoming new work also rose at slower rates.

“The US economic growth slowed in the third quarter according the PMI surveys, down to around 2.2%,” wrote Markit chief economist Chris Williamson in the release. “But this largely represents a payback after growth rebounded in the second quarter, suggesting that the economy is settling down to a moderate rate of growth in line with its long term average.”Screen Shot 2015 10 05 at 9.49.41 AM