NEW YORK – The U.S. services sector expanded at a slower pace in September as the non-manufacturing business activity composite index was 53.0 in the month, compared to 53.3 in August, on a seasonally adjusted basis, the Institute for Supply Management reported Wednesday.
Economists polled by Thomson Reuters had expected a 53.0 level.
An index reading below 50 signals a slowing economy, while a level above 50 suggests expansion.
The prices paid index, closely watched for signs of inflation, dipped to 61.9 from 64.2.
The employment index decreased to 48.7 from 51.6.
The business activity/production index grew to 57.1 from 55.6, the new orders index was at 56.5, up from 52.8; backlog of orders climbed to 52.5 from 47.5; new export orders slipped to 52.0 from 56.5; inventories fell to 51.5 from 53.5; inventory sentiment rose to 59.0 from 56.0; the supplier deliveries index fell to 49.5 from 53.0; and imports decreased to 47.5 from 53.5.
Members' general comments on business in the month included:
“Weak consumer confidence and high gas prices are placing downward pressure on retail sales volume.” (Information)
“Business volume outlook and confidence across many market areas in North America appear to be softening.” (Mining)
“It appears everyone is waiting to see what happens next. No trust in the economy or the federal government to do what is needed.” (Accommodation & Food Services)
“The 2012 outlook is not optimistic; though we keep hoping for a rebound, we see little sign of an improved economy — nothing at least that will spur growth, investment or expansion. Improved investment performance in early 2011 caused us to begin several large capital projects, and although we have broken ground, we cannot help but question if our timing was right.” (Educational Services)
“Third and fourth quarters appear to be slowing down in order volumes. Uncertainty over U.S. and European economy is causing clients to hold off on new orders.” (Professional, Scientific & Technical Services)
“Negative forecast for housing market’s future leads us to think we will be at current levels of business at best for the foreseeable future.” (Wholesale Trade)
