Source: Economics Group of Wells Fargo Bank, N.A.Summary The ISM Services Index declined modestly in September, but at 56.7 it is still consistent with expansion in the sector. Most of the details indicate just that: continued growth with some modest give back in the pace of activity. Easing supply chains continue to provide some relief, and a rebound in the employment component signals another steady month of hiring. Service Sector Resilience Service sector activity remained solid in September. The headline reading on the ISM Services Index declined, signaling a slower pace of activity last month, but at 56.7 it was higher than the consensus expectation and still signals expansion (chart). Most major components of the index declined last month, with the employment index being one of the lone bright spots. The employment component rose 2.8 points to 53.0, marking the highest reading in six months. Squaring this with the pullback in the manufacturing employment counterpart indicates another solid but slightly slower gain in hiring last month compared to August. READ FULL ARTICLE>>
