US ISM Services PMI jumped from 51.5 to 54.9 in September, above expectation of 51.5, marking the highest reading since February 2023. The data also points to sector expansion for the 49th time in 52 months.
Looking at some details, business activity/production surged from 53.3 to 59.9. New orders jumped from 53.0 to 59.3. However, employment fell from 50.2 to 48.1. Prices also rose from 57.3 to 59.4.
ISM said: “The past relationship between the Services PMI® and the overall economy indicates that the Services PMI® for September (54.9 percent) corresponds to a 1.9-percentage point increase in real gross domestic product (GDP) on an annualized basis.”
