Details show a slowing in new business growth this month to a 3-month low and a downtick in business confidence to just about a 2-year low. But there are positives including job creation which, though unchanged, is at a 3-month high. Unfinished work and backlog accumulation are both solid. Looking at prices, inputs are down while outputs are showing traction.
Though a high 50 reading is consistent with solid growth, today's report nevertheless points to a slower ending to the third quarter for the bulk of the nation's economy and will certainly pull down forecasts for next week's ISM non-manufacturing survey.
Recent History Of This Indicator:
The Markit PMI services index in September was strong and steady, well over breakeven 50 at 58.9 and versus 58.5 at mid-month and 59.5 in final August. Backlog was at a record high for this sample, which goes back five years, as new business rose at what the report calls a "sharp and accelerated pace." Employment continued to grow and input price pressures eased. The sample's outlook was very positive with about half expecting business activity to increase over the next year and only 5 percent seeing a reduction.
The Markit PMI services index in September was strong and steady, well over breakeven 50 at 58.9 and versus 58.5 at mid-month and 59.5 in final August. Backlog was at a record high for this sample, which goes back five years, as new business rose at what the report calls a "sharp and accelerated pace." Employment continued to grow and input price pressures eased. The sample's outlook was very positive with about half expecting business activity to increase over the next year and only 5 percent seeing a reduction.
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