US Services Growth Slows in September as Orders Plunge
Source: Associated Press
By christopher s. rugaber, ap economics writer
WASHINGTON — Oct 5, 2015, 11:38 AM ET
Growth in the U.S. services sector slowed in September as sales fell and new orders plunged, evidence that stock market volatility may have hit consumer confidence and limited spending.
The Institute for Supply Management said Monday that its services index fell to 56.9 last month from 59 in August, which was the second-highest reading in a decade. Any reading above 50 signals expansion.
A measure of sales fell to 60.2, still a healthy reading, from 63.9. A gauge of new orders, however, dropped nearly 7 points to 56.7. That suggests sales growth may continue to cool in the coming months.
The survey still points to solid sales and growth for services firms, including retailers, hotels, banks and other financial services companies. More than 8 million Americans have found jobs in the past three years, lifting their ability to spend on restaurant meals, clothes and vacations. That pushed up the ISM services index in July and August to the highest levels since 2005.
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