Institute for Supply Management says US services growth slows
The US services sector lost a bit of momentum in September, with growth slowing slightly according to the Institute for Supply Management.
Its key index dropped to 54.9 from August's 55.4, still above 50, so things are growing, just not as fast.
The slowdown mostly comes from higher energy costs and supply chain issues tied to the ongoing US-Israeli war with Iran.
Service prices highest and hiring returns
Rising costs for businesses (especially those moving goods through the Strait of Hormuz) have pushed prices up to their highest in more than four years. That means inflation isn't letting up anytime soon.
While new service orders eased to 59.8 last month after surging to 60.9 in August, backlogs are piling up too, showing companies are feeling the squeeze.
Meanwhile, hiring is returning to growth as services employment climbed to 50.1 from 47.8 in August.