U.S. private-sector service activity expanded at a slower pace in September, with the S&P Global services Purchasing Managers' Index (PMI) coming in below analyst projections.
The index, compiled by S&P Global and released on Thursday, fell to 56.5 from 54.6 in August. The figure missed the median forecast of 56.8 among economists surveyed by Investing.com. A reading above 50 indicates expansion in the sector, which includes transport, communications, financial services, business and personal services, computing and IT, and hospitality.
The decline follows a rebound in August, when the index climbed above the 50 threshold after a prior month of softer growth. The latest reading remains consistent with expansion but suggests a moderation in momentum.
The services PMI is closely watched as a gauge of economic activity in the dominant U.S. services sector, which accounts for the majority of the country’s gross domestic product. While the index remains above the breakeven level, the sequential slowdown may temper expectations for robust third-quarter growth.
The report did not provide commentary on the implications for monetary policy or the broader economic outlook.
