US DATA: Final Service PMIs Revised Lower But Growth Still Solid

Downward revisions to the final S&P Global US services/composite PMI for September don’t materially alter readings that continue to imply solid economic growth whilst revealing firmer price pressures, although confidence dropped markedly. Full press release here. 

• Services PMI: 55.2 (cons & prelim 55.4) in Sept after 55.7 in Aug
• Composite PMI: 54.0 (cons & prelim 54.4) after 54.6
• “September saw a further marked expansion of US services activity as demand was helped in part by a reduction in interest rates. New business continued to rise solidly, leading to a build-up of unfinished work as companies were cautious with regards to hiring in the face of strong cost pressures."
• However, “business confidence dropped markedly due to concerns of a slowdown in the economy.”
• Some notably specific on price components, including prices charged inflation at a six-month high: "Input prices increased rapidly in September, with the rate of inflation the joint-fastest in the past year. Higher input costs were often linked to salary pressures. Alongside higher staff pay, rising prices paid for manufactured goods led some companies to increase their selling prices markedly during the month. The rate of inflation of prices charged for services quickened to a six-month high. Rates of increase in both input costs and selling prices were well above the respective pre-pandemic averages."