Preliminary
data issued by S&P Global on Monday revealed that U.S. private sector
business activity grew in early September albeit at a marginally slower pace than in the
previous month, reflecting weaker growth in services sector and deeper
contraction in manufacturing.
According to
the report, S&P Global flash U.S. Composite Purchasing Manager's Index
(PMI) Output Index came in at 54.4 early this month, slightly down from 54.6 in
August. The latest reading signalled a sustained economic expansion over the third
quarter. Economists had expected
the composite PMI to decrease to 54.3.
A reading above
50 signals an expansion in activity, while a reading below this level signals a
contraction.
S&P Global
flash services PMI checked in at 55.4 in September, down from 55.7 in August. The latest reading indicated that
the rate of increase in activity across service sector was the second-highest
seen over the past 29 months. Economists had forecast the services PMI to slip to 55.3.
Meanwhile, S&P
Global flash manufacturing PMI dropped to 47.0 in September from 47.9 in the
previous month. The latest print pointed to the steepest deterioration in
manufacturing sector activity since June 2023. Economists had anticipated the manufacturing PMI to increase to 48.5.