US services and composite activity confirmed at multi-year highs in September
Final PMI readings match the flash estimates, removing any chance of a downward revision
Published
The final US composite PMI for September came in at 58.4, matching the flash estimate and up from 56.0 in August. The final services PMI reached 58.8, slightly above the 58.7 flash reading and up from 56.5 the month before.
S&P Global's flash release had described the September composite reading as a 62-month high, with growth marking the fastest expansion since July 2021 and the fourth straight month of acceleration. The services sector reported its steepest rise in output in over five years, while manufacturing output grew at its fastest pace since April 2022, S&P Global said. Employment rose at a pace not seen in more than four years as firms worked to keep up with demand, though input costs surged on higher energy prices, and backlogs and supply chain delays intensified, according to S&P Global.
Speaking after the flash release, Chris Williamson, chief business economist at S&P Global Market Intelligence, said historical comparisons point to annualized growth of around 5%, with a 4% gain signaled for the third quarter as a whole. Ahead of that release, FXStreet reported markets had expected the Federal Reserve to keep its cautious bias intact.
By matching the flash print rather than revising it, the final data removes any lingering chance that the services and composite gauges would be marked down. The jump from 56.0 to 58.4 on the composite and from 56.5 to 58.8 on services shows the US expansion broadening, even as survey data out of the UK points the other way, S&P Global figures show. The flash release for the UK showed output growth softening in September while inflationary pressures intensified, widening rather than narrowing the gap between the two economies. With the final reading now confirmed, the figures clear away one source of uncertainty ahead of the next round of growth and inflation data.