Activity in the U.S. services sector expanded for the third consecutive month in September, registering its best monthly performance in more than a year, but shrinking employment and persistent price pressures lurked in the background.
The Institute for Supply Management’s (ISM’s) Services Purchasing Managers’ Index (PMI)—a gauge of the general direction of economic trends in the services industry—rose to 54.9 in September, the highest level since February 2023.
This was up from 51.5 in August and topped the market estimate of 51.7. Anything above 50 indicates expansion.
Last month’s PMI reflected robust business activity and increased new orders. Inflationary pressures persisted in September as the consumer price index climbed to its highest since May….