S&P Global’s flash U.S. composite PMI reading for September was 54.4, down from 54.6 in August. Economists had been expecting a slight decline in the index, which reflects activity in the services and manufacturing sectors.
In S&P’s report, the services sector’s index fell to 55.4 this month from 55.7 in August, while manufacturing activity continued to weaken, falling to 47 from 47.9 in the previous month, the lowest level in 15 months.
When these indices are above 50, they indicate expansion in the sector, while when they are below 50, they indicate contraction.
“Early survey data for September suggests the economy continues to grow at a solid pace, although weakening manufacturing and rising political uncertainty pose significant headwinds,” Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement.
The survey’s future production index, which measures optimism about production over the next 12 months, fell to its lowest level since October 2022.
“Uncertainty surrounding the presidential election is dampening business confidence, demand, hiring and investment, casting a shadow over many companies’ outlook for the year ahead,” Williamson wrote.