US ISM Services PMI Slows to 54.9 in September as Inflation Pressures Mount

The U.S. services sector expanded for the 27th consecutive month in September, though growth slowed slightly more than anticipated. The ISM Services PMI fell to 54.9 from 55.4 in August, missing consensus expectations of 55.0 to 55.2. Business activity dropped to 56.5 from 61.7, and new orders slipped to 59.8, while employment returned to expansion territory at 50.1. Meanwhile, the prices paid metric climbed to 74.0, marking its highest reading since July 2022. Following the release, the S&P 500 rose 0.25% and the Nasdaq 100 gained 0.33%.