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."
