The U.S. services sector expanded at a slower pace in September as the non-manufacturing business activity composite index was 58.6 in the month, compared to 59.6 in August, on a seasonally adjusted basis, the Institute for Supply Management reported Friday.
Economists polled by Thomson Reuters had expected a 58.5 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index slipped to 55.2 from 57.7.
The employment index increased to 58.5 from 57.1.
The business activity/production index fell to 62.9 from 65.0, the new orders index was at 61.0, down from 63.8; backlog of orders declined to 52.0 from 54.5; new export orders grew to 57.5 from 52.5; inventories rose to 52.0 from 51.0; inventory sentiment gained to 60.0 from 55.0; the supplier deliveries index dipped to 52.0 from 52.5; and imports climbed to 52.5 from 51.0.
Members' general comments on business in the month included:
"General business conditions have improved." (Information)
"Local business, and thus lending activity, is picking up." (Finance & Insurance)
"Still incurring significant global challenges on pharmaceutical solution supply shortages." (Health Care & Social Assistance)
"Pricing on most food related items continue to go up monthly." (Accommodation & Food Services)
"Business is holding steady with orders increasing slightly. The rest of 2014 should show some slight growth. International orders have been slow to match U.S. growth but appear to be increasing slightly as well." (Professional, Scientific & Technical Services)
"The local economy continues to get stronger." (Public Administration)
"Year-over-year same store sales up approximately 4 percent resulting in continued store remodeling, new construction and upgrades." (Retail Trade)
"New orders, project business and backlog remain robust. Internal investment in capital remains positive." (Wholesale Trade)
