ISM Services Index Falls To 58.6% In September

U.S. services and other nonmanufacturing companies reported slower growth for September, after hitting its highest level since 2008 in August, according to a survey of senior executives released Friday. The Institute for Supply Management said its gauge of nonmanufacturers fell to 58.6% last month from 59.6% in August. The pullback was in line with forecasts of economists polled by MarketWatch. Readings over 50% indicate an overall expansion. Of the 18 industries tracked by Tempe, Ariz.-based ISM, 12 reported growth last month while five reported contraction. Also Friday, ISM reported that its gauge of new orders for nonmanufacturers showed slower growth in September, slipping to 61.0%, down 2.8 points from August and the gauge of business activity/production fell 2.1 points to 62.9%. Meanwhile, the employment barometer rose 1.4 points to 58.5%. The report may hint at a "little bit of slowing in momentum" from the strong rate of growth seen in the data over the last several month, said Anthony Nieves, head of the ISM non-manufacturing survey.