S&P Global’s U.S. composite PMI index came in at 54.4 in September, down from 54.6 in August. Economists had expected a slight decline in the index, which tracks activity in the services and manufacturing sectors.
The S&P report’s services index registered 55.4 this month, down from 55.7 in August. Meanwhile, manufacturing activity continued to stagnate, falling to 47.9 the previous month, its lowest level in 15 months.
Any reading above 50 for these indices represents an expansion of the sector; readings below 50 indicate a contraction.
“Early survey indicators for September point to an economy that continues to grow at a solid pace, although a weakened manufacturing sector and growing political uncertainty act as significant headwinds,” Chris Williamson, chief economist at S&P Global Market Intelligence, wrote in the statement.
The survey’s future output index, which measures optimism about output in the coming year, hit its lowest level since October 2022.
“Business sentiment, demand, hiring and investment are being held back by uncertainty surrounding the presidential election, casting a shadow over the outlook for the year ahead for many companies,” Williamson wrote.
