(IHS Markit) The U.S. service sector expansion slowed to a PMI of 54.9 in September, a drop compared to 55.1 in August.
Fig: U.S. Service PMI Business Activity Index
September had the slowest growth in new business acquisition in the past 13 months, which saw output upturn ease the lowest in nine months.
Export orders declined for the second straight month on weakening foreign client demand.
Labor shortage led to the steepest rise in work backlogs in 12 years, affecting output growth.
Inflationary pressure continued to surge sharply for the second subsequent month. Charge inflation softened due to a slower rise in the service sector selling prices.
Business confidence was historically elevated to the strongest level since June in the face of reducing Covid-19 cases and rising demand.
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