The ISM Services Index grew by 3.4 percentage points (points) to 54.9%.
“Twelve industries reported growth in September, up two from the 10 industries reporting growth in August. The Services PMI® has expanded in 19 of the last 21 months dating back to January 2023, and the September reading is well above its average for 2024. The increase in the Services PMI® in September was driven by boosts of more than 6 percentage points for both the Business Activity and New Orders indexes. The Employment and Supplier Deliveries indexes had mixed results, with a 2.1-percent decrease and 2.5-percent increase, respectively”, said Steve Miller, CPSM, CSCP, Chair of the Institute for Supply Management® (ISM®) Services Business Survey Committee.
The Business Activity Index registered 59.9% in September, 6.6 points higher than the 53.3% recorded in August, indicating a third month of expansion after a contraction in June. The Supplier Deliveries Index indicated slower performance for the first time in three months. The index registered 52.1%, up 2.5 points from the 49.6% recorded in August. (A reading of below 50 percent indicates faster deliveries). The Prices Index registered 59.4% in September, a 2.1-point increase from August’s reading of 57.3%. Respondents commented: “Sales have slowed a bit, with customers possibly holding back on new projects and awaiting the outcome of the presidential election.” (Wholesale Trade)
The Inventories Index returned to expansion territory after two consecutive months of contraction. The index registered at 58.1%, an increase of 5.2 points from August’s figure of 52.9% and the Employment Index contracted for the first time in three months; the reading of 48.1% is a 2.1-point decrease compared to the 50.2% recorded in August. Respondents commented: “Business has been flat over the past three to six months, with concerns over growth in the near term.” (Agriculture, Forestry, Fishing & Hunting)
The Inventory Sentiment Index expanded for the 17th consecutive month, registering 54.0%, a 0.9-point decrease from the August’s figure of 54.9%. This reading indicates that respondents feel their inventories are too high when correlated to industry levels.
Read the ISM release.
