18 hrs ago
US Services Activity Hits Five-Year High as Demand Strengthens
US service businesses grew much faster in September than they did in August.
The measure of their activity reached its highest level in more than five years.
Many businesses received more orders, especially from customers in the United States.
Companies hired more workers, too.
But many still had more work waiting to be finished than they could handle.
Businesses also said that costs, including gas, transportation and labour, were rising faster.
They raised the prices they charge for services more quickly as well.
This strong growth is good news for business activity, but rising prices may make it harder for the Federal Reserve to bring inflation down.
The S&P Global US Services Business Activity Index rose to 58.8 in September from 56.5 in August.
New orders grew at their fastest pace in four and a half years, led by strong domestic demand.
Employment rose for a third consecutive month, with job creation at its fastest pace since June 2022.
Input cost inflation accelerated to its fastest pace since November 2022, while services selling prices also rose faster.
The S&P Global US Composite PMI increased to 58.4, indicating the strongest overall business expansion in more than five years.
- Who
- US services businesses, as measured by S&P Global.
- What
- Services activity and new orders accelerated, hiring strengthened, and costs and selling prices rose faster.
- Where
- United States.
- When
- September; the report compares the results with August.
- Why
- Strong demand and rising new orders supported business growth and hiring; the articles do not identify a more specific cause.
Key facts
- Services Business Activity Index
- 58.8 in September, up from 56.5 in August.
- Services activity
- Strongest expansion since July 2021.
- New orders
- Growth reached its fastest pace in four and a half years.
- Employment
- Job creation was at its strongest pace since June 2022.
- Input cost inflation
- Fastest pace since November 2022.
- Composite PMI
- 58.4 in September, up from 56.0 in August.
- Growth estimate
- Chris Williamson estimated that activity indicated about 4% economic growth in the third quarter, with September alone pointing to about 5% annualised growth.
Sources
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