U.S. services sector growth slows to three-year-low
- 5 years ago
The U.S. services sector joined manufacturing in taking a big step back last month, fueling concerns of a global economic slowdown.
Kim Hyesung reports.
The U.S. services sector, which accounts for more than two-thirds of U.S. economic activity, grew at its slowest pace in three years in September, adding to a recent string of weak economic data.
The Institute for Supply Management’s non-manufacturing index dropped 3-point-eight points to 52-point-six last month, the lowest since August 2016.
ISM said “respondents are mostly concerned about tariffs, labour resources and the direction of the economy.”
Although the index remains above the threshold of 50 that separates expansion from contraction, September’s result undershot the median forecast of 55-point-one in a survey of economists by Reuters.
The data comes after ISM reported on Tuesday that U.S. manufacturing activity plunged in September to its lowest level in more than a decade.
The weakening in U.S. services and manufacturing sector growth is mirroring developments in Europe.
According to IHS Markit, the Eurozone Services Purchasing Managers’ Index fell to 51-point-six last month.
Germany's Services PMI dropped to a three-year low.
France, the UK and Spain all saw their services PMI fall on-month in September.
The Eurozone Manufacturing PMI also fell to the lowest level since October 2012.
The World Trade Organization had warned last month that the impact of the U.S.-China trade dispute, until now largely confined to manufacturing, may be expanding to the trade in services, which could further drag on global economic growth.
The WTO expected volumes of traded goods to rise 1-point-two percent this year last Tuesday, far lower than the two-point-six percent estimate it issued in April.
Kim Hyesung, Arirang News.
Kim Hyesung reports.
The U.S. services sector, which accounts for more than two-thirds of U.S. economic activity, grew at its slowest pace in three years in September, adding to a recent string of weak economic data.
The Institute for Supply Management’s non-manufacturing index dropped 3-point-eight points to 52-point-six last month, the lowest since August 2016.
ISM said “respondents are mostly concerned about tariffs, labour resources and the direction of the economy.”
Although the index remains above the threshold of 50 that separates expansion from contraction, September’s result undershot the median forecast of 55-point-one in a survey of economists by Reuters.
The data comes after ISM reported on Tuesday that U.S. manufacturing activity plunged in September to its lowest level in more than a decade.
The weakening in U.S. services and manufacturing sector growth is mirroring developments in Europe.
According to IHS Markit, the Eurozone Services Purchasing Managers’ Index fell to 51-point-six last month.
Germany's Services PMI dropped to a three-year low.
France, the UK and Spain all saw their services PMI fall on-month in September.
The Eurozone Manufacturing PMI also fell to the lowest level since October 2012.
The World Trade Organization had warned last month that the impact of the U.S.-China trade dispute, until now largely confined to manufacturing, may be expanding to the trade in services, which could further drag on global economic growth.
The WTO expected volumes of traded goods to rise 1-point-two percent this year last Tuesday, far lower than the two-point-six percent estimate it issued in April.
Kim Hyesung, Arirang News.