September data revealed a strong increase in U.S. private sector business activity, with the rate of
growth close to August’s seven-month peak.
Figures released by the IHS Markit Economics showed the latest expansion of private sector output was driven by a robust upturn in services activity, which contrasted with relatively subdued growth among manufacturing companies.
At 54.6 in September, the seasonally-adjusted IHS Markit Flash U.S. Composite Purchasing Managers Output Index was down slightly from 55.3 in August, but still considerably above the 50.0 no-change value.
Higher levels of private sector output have been recorded in each month since March 2016. Robust business activity growth was supported by a
further rise in new work received by private sector firms in September. However, the latest increase in new orders was the slowest for three months.
Weaker new business growth contributed to the softest pace of job creation since June. The moderation in employment growth was driven by
the service sector, as manufacturing payroll numbers expanded at the quickest rate since December 2016.
The Markit U.S. Services PMI Business Activity Index registered at 55.1, down only slightly from August's 21-month peak, with the manufacturing index at 53.0, only a tad above the 52.8 reported in August.
