[source image]
Dow Jones NewsOct 3, 2:43 PM UTC
U.S. Services-Sector Activity Unexpectedly Stagnates -- ISM
By Ed Frankl
Economic activity among U.S. services firms was unchanged last month, an unexpected result hurt by a pullback in business and weaker employment, a monthly survey said Friday.
The Institute for Supply Management's purchasing managers index for services providers fell to the 50.0 no-change mark in September that divides expansion from contraction. That was a decline from the 52.0 recorded in August, and lower than consensus expectations of economists polled by The Wall Street Journal that it would remain at the same level of expansion.
"September's services PMI level returned to numbers very similar to May and July, with weakness in business activity and continued weakness in employment," said Steve Miller, chair of the ISM Services Business Survey Committee. The PMI was last in contraction in May.
ISM's business-activity index for, a component of the PMI, moved into contraction for the first time since May 2020 at the height of the pandemic. Respondents noted lower export demands, but also some slight increase in sales of everyday products, ISM said.
Commentary in general indicated moderate or weak growth, Miller said, with more isolated observations of supplier delivery challenges, although new orders and backlogs showed improvements.
"Employment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff," he added.
Ten services industries recorded expansion in activity in September, two fewer than in August, while seven recorded declines, the report said.
The data comes after ISM reported Wednesday that manufacturing activity contracted in September, albeit at a slower pace than August.
Write to Ed Frankl at edward.frankl@wsj.com
(END) Dow Jones Newswires
October 03, 2025 10:43 ET (14:43 GMT)
Copyright © 2025 Dow Jones & Company, Inc.
