US Non-Manufacturing PMI Falls to 54.9 in September as Price Pressures Intensify
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The Institute for Supply Management reported on the 5th that its non-manufacturing purchasing managers' index for September came in at 54.9, down from 55.4 in August. Economists had expected a nearly flat reading of 55.2. Strong domestic demand is straining supply chains, and the index of prices companies pay for inputs rose to 74.0 from 72.6 in August, which, together with a similar increase in the manufacturing index, points to higher inflation ahead and supports economists' expectations that the Federal Reserve will raise interest rates in December. The new orders index for the services sector fell to 59.8 from 60.9 in August, while the supplier deliveries index rose to 53.2 from 51.3, indicating delivery delays for a 22nd consecutive month. The employment index rose to 50.1 from 47.8, supporting the view that the labor market is stable.