U.S. service sector output grows at subdued rate in September

U.S. service sector output expands at a subdued rate in September. The seasonally adjusted IHS Markit flash Services PMI Business Activity fell in the month to 52.9 from August’s 54.8. This is the weakest growth since March 2017. Nevertheless, a renewed rise in backlogs of work and stronger new business growth gave signs of resilient underlying demand in the month.

Attempts to stimulate operating capacity supported a strong and accelerated upturn in employment. The pace of job creation in the service economy was the most rapid since May 2015. Expectations for activity growth in the year ahead weakened in the month. The extent of positive sentiment was the lowest since December 2017.

Some companies commented on intense cost pressures. This was also underlined by a solid increase in input prices in September, while average prices charged by service providers rose at the most rapid pace since the survey started in October 2009.

At 19:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bearish at -67.5241. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex