Business
US Business Activity Slows as Economic Indicators Shift in September
Washington, D.C. — US business activity lost momentum in September, with S&P Global’s Composite Index dropping to 53.6 from 54.6 in August. This index indicates growth but suggests the private sector is struggling to strengthen further.
The decline came as manufacturing and services sectors showed signs of slowing. Manufacturing’s Purchasing Managers’ Index (PMI) eased to 52.0 from 53.0, indicating growth still exists but at a reduced pace. The services sector saw a sharper decline, slipping to 53.9 from 54.5, suggesting a potential decrease in demand.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, remarked, “Further robust growth of output in September rounds off the best quarter so far this year for US businesses. PMI survey data are consistent with the economy expanding at a 2.2% annualized rate in the third quarter.”
The US dollar (USD) maintained daily gains around the 93.40 mark following the report. It showed the strongest performance against the New Zealand dollar, while fluctuations were observed with other major currencies.
On Tuesday, S&P Global is set to release the September flash Purchasing Managers’ Indices for various economies, including the US. Anticipation surrounds whether the Services PMI will report at 53.9 and manufacturing at 52.0. Over 50 signifies sector growth, while a number below indicates contraction.
Williamson highlighted that a strong PM reading is crucial for confirming a healthy economic trajectory. Financial markets closely observe these reports as they influence the Federal Reserve’s decisions on interest rates.
A mixed economic picture has emerged as inflation data is expected later this week, which could sway Federal Reserve policy. Markets speculate on potential additional rate cuts by the Fed to bolster the labor market.
With central bank meetings concluding, markets have exhibited relative stability despite ongoing uncertainties in the US economy. Investors remain cautious as they anticipate key data releases.
