Commentary Directory
- Q1 GDP Growth Jumps 1.1% on Strong Personal Consumption
- A Strong March Leads to a Surge in Chinese GDP in Q1 2023
- Durable Goods Retail Sales Suffer from High Interest Rates and Wary Consumers
- Choppy GDP Means UK Should Avoid Q1 Recession
- Japanese Consumer Confidence Jumps to Highest Level in Over a Year
- The End of Summer Sees the End of Disinflation in Europe
- Labor Market Indicators are Starting to Unify on Easing in Hiring
- Inflation and Tight Financial Conditions Weigh on the German Consumer
- Euro Area Money Supply Contracts for the First Time Since 2010
- Dismal Economic Data Out of Germany
- Core Durable Goods New Orders See Gentle Uptrend in July
- More UK Data Pointing to Q3 Decline
- Whispers of a UK Contraction in Q3
- Japan's Core Inflation Resumes Uptrend in July
- Early July Economic Data Leads to a Sharp Increase in Q3 Growth Expectations
- UK CPI: Energy Inflation Crashes but Services Inflation is Still Sticky
- China's Weak Start to Q3 Means More PBoC Easing
- A Breather for the Eurozone as Inflation Hits Two-Year Low
- Germany's September CPI Report: A Clearer Picture of Inflation Trends
- US Manufacturing Demonstrates Resilience Amidst Volatility in August
- The ECB Prepares to Address Excess Liquidity Through the MRR
- Bank of Japan is Too Optimistic on Inflation
- The Bank of England Pauses in a Near Split Decision
- UK Inflation August Update: A Precursor to the Bank of England's Announcement
- Housing Starts Tumble in August Amid Rising Mortgage Rates
- US Retail Sales Grow at Fastest Monthly Rate Since the Start of the Year
- US Consumer Prices Surge in August Driven by Energy Costs
- August NFIB Survey Showed a Tough Environment for Small Businesses
- All Signs Point to a Weaker Labor Market in August
- Chinese CPI Trying to Buck the Deflation Trend
- Energy Prices Rise but the Core Disinflationary Trend is Maintained in September
- PPI's Quiet Rise and the Energy Elephant in the Room
- Small Businesses Grapple with Inflation and Financial Strain in September
- A Wacky September Jobs Report Shows Strong Labor Market
- A Look at the Fragile US Labor Market Ahead of the Nonfarm Payrolls Report
- Thoughts on GME and This Week in the Stock Market
- Record Home Price Levels Point to Strength in Post-Pandemic Economy
- The Stock Market Looks Overvalued, but It's Probably Not
- China GDP Growth Surpasses Expectations
- President-elect Joe Biden Introduces His "American Rescue Plan"
- Political Polarization Intensifies with Another Impeachment Along Party Lines
- Metal Demand Has a Bright Future in 2021 and Beyond
- What Happened to That US-China Trade Dispute?
- Civil Unrest, A Rising Threat to the 2021 Economy
- What's in the $900 Billion Relief Plan?
US ISM Services PMI: September 2023
Jacob Hess
October 04, 2023
- EconoBrief
- US
US ISM Services PMI
10/4/2023 (September 2023)
53.6 (-0.9 pts)
In-line
Highlights
| Business Activity Index | 58.8 (+1.5 pts) |
| New Orders Index | 51.8 (-5.7 pts) |
| Price Index | 58.9 (0.0 pts) |
In September, the Services PMI registered at 53.6%, marking the ninth consecutive month of expansion in the services sector, according to the latest Services ISM Index. Although this figure is slightly lower than August's 54.5%, it indicates sustained growth in the sector, which has expanded in 39 of the last 40 months. The report also highlighted a 1.5 pt increase in the Business Activity Index (58.8) and a -5.7 pt drop in the New Orders Index (51.8). Supplier Deliveries Index entered the expansion territory for the first time since November 2022 at 50.4 (+1.9 pts). Meanwhile, the Prices Index remained stable at 58.9, and the Inventories Index saw a slight decline to 54.2 (-3.5 pts). Despite some pullback in the rate of growth, mainly in New Orders and Employment indexes, the majority of respondents are optimistic about business conditions, although some expressed concerns about potential headwinds.
The services sector continues to expand but at a softer rate. As expected, the cooling of this part of the economy is happening gradually, mirroring the pace of the loosening of the labor market. What sticks out of the subindexes is that business activity is still seeing robust growth even as new orders growth pulls back. As a result, services firms still find the ability to increase prices for the 76th straight month in a row. Thus, the Fed still has something to push back against.
© MTS Insights 2023