Preliminary manufacturing and services PMI numbers from Markit
Lowest since March 2017
Prior services PMI was 54.7
Employment 55.3 vs 53.5 prior (highest since 2015)
Manufacturing:
Manufacturing PMI 55.6 vs 55.0 expected
Prior was 54.8
Employment 53.4 vs 54.2 prior
Composite index 53.4 vs 54.7 prior.
Weak on services but strong on manufacturing. The internals of the service sector survey are tough to square with employment at the highest since 2015 but the overall survey at the lowest since March 2017. Hurricane Florence and other storms may be the culprit.
"With storms hitting the east coast, it was no surprise to see some disappointing survey data in September, with the flash PMI indicating that the pace of economic growth slipped to its lowest for almost one-and-a-half years," said Chris Williamson, Chief Business Economist at IHS Markit in the release.
He says growth continues to run near 3% in Q3 and that with new orders and backlogs accelerating, it could pick up again in Q4.
"With new orders growth accelerating and backlogs of work rising due to weather-related disruptions, the survey data suggest underlying demand remains robust and that there's an accumulation of work that will roll over into stronger economic growth in coming months," he said.
