Service sector growth slows in September as orders plunge

October 06 00:26 2015

Growth in the U.S. services sector slowed in September as sales fell and new orders plunged, evidence that stock market volatility may have hit consumer confidence and limited spending.635561396262096991-87538JS002-SERVICE-SECTO-23319125

The Institute for Supply Management says its services index fell to 56.9 last month from 59 in August, which was the second-highest reading in a decade. Any reading above 50 signals expansion.

A measure of sales fell to 60.2, still a healthy reading, from 63.9. A gauge of new orders, however, dropped nearly 7 points to 56.7. That suggests sales growth may continue to cool in the coming months. The ISM is a trade group of purchasing managers. Its services survey covers businesses that employ 90 percent of workers, including construction firms and financial services.

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