Being of service: ISM and S&P Global services PMIs
SPY•US services remained in expansion in September: the ISM PMI fell 0.5 points to 54.9, while the S&P Global final reading rose to 58.8. ISM prices paid climbed to 74.0, its highest reading in more than four years.
1. Services remain in expansion
The ISM services PMI fell 0.5 points in September to 54.9, 0.3 points below consensus but above the 50 level that separates expansion from contraction. New orders and production slowed but remained in expansion, while employment rose 2.3 points to 50.1.
2. Price pressures rise
ISM prices paid increased 1.4 points to 74.0, its highest reading in more than four years. Survey participants cited war-related price pressures, tariffs, supply chain challenges and rising interest rates, alongside solid demand.
3. S&P Global reading advances
The final S&P Global services PMI was revised 0.1 points higher from its flash reading to 58.8, up 2.3 points from August. The S&P Global composite PMI rose 2.4 points from August to 58.4. Chris Williamson said the survey showed stronger business growth and hiring, while its price gauges pointed to accelerating inflation.
