The latest
report by IHS Markit revealed on Monday the seasonally adjusted final IHS
Markit U.S. Services Business Activity Index (PMI) stood at 55.0 in September, down
slightly from 55.0 in August, but matching the earlier released “flash”
estimate. The latest reading signaled a solid upturn in the U.S. service sector
business activity, albeit one that was slightly slower than August's recent high.
Economists had
forecast the index to stay unrevised at 54.6.
According to
the report, the rate of new business growth was the sharpest since March 2019,
as total new sales were boosted by strengthening customer demand. Input costs
rose at a strong rate, but one that was outpaced by the increase in selling
prices, as firms passed on higher costs to clients. The rate of job creation
was strong overall and the second-quickest since February 2019. On the price
front, input costs increased at a sharp, albeit softer pace in September, while
selling prices rose at the fastest rate since September 2018 and outpaced the
rise in cost burdens, as firms took advantage of stronger demand conditions.
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