US services PMIs show slowing momentum in September
Two closely followed surveys tracking the US services sector painted a contrasting picture of economic activity in September, though both showed a slowdown in momentum during the month.
03 October 2025 15:38:13
Source: Sharecast
The final reading of the S&P Global US services purchasing managers' index (PMI) came in at 54.2, up from the flash estimate of 53.9 but below the 54.5 recorded in August – pointing to a softening of business activity growth in September.
The survey showed a slower increase in demand, as well as a limited rise in hiring, as trade tariffs continued to drive operating expenses higher.
However, S&P Global reported that business confidence had improved, rising to its highest level since May despite ongoing tariff and interest-rate uncertainty.
In contrast, the ISM services survey – which covers a wider range of businesses since it surveys all types of 'non-manufacturing' sectors like agriculture and construction – showed that growth had stalled completely during the month.
The ISM PMI fell to the breakeven point of 50, down from 52.0 and well below the market forecast of 51.6.
Notably, the business activity index moved into contraction for the first time since May 2020, falling 5.1 points to 49.9.