By Allison Prang 
 

Output growth in the private sector fell in the latest month to its lowest in 17 months and future expectations hit the lowest point they have been at this year, IHS Markit said Friday.

The flash reading of IHS Markit's U.S. Composite PMI Output Index for September was 53.4, down from 54.7 last month and the lowest it has been in 17 months.

IHS Markit said some of the slower growth in output could be attributed to Hurricane Florence, according to anecdotes. But new business growth rose and employment rose the most it has since May of 2015, the firm said.

IHS Markit also said that "average prices charged by private sector firms increased at the sharpest rate seen in the nine-year survey history." Manufacturers said metals prices also rose due to tariffs, the firm noted.

The flash reading for IHS Markit's U.S. Manufacturing PMI rose to 55.6 from 54.7 last month. The firm's flash reading for the U.S. Services PMI fell to 52.9, down compared with 54.8 last month.

The U.S. Composite PMI Output Index takes into account data from the manufacturing and service indexes.

IHS Markit also said future expectations hit their lowest point this year.

Chris Williamson, IHS Markit chief business economist, said in prepared remarks that the September results were "no surprise" given East Coast storms and said going into the fourth quarter, growth could accelerate.

"The escalation of trade wars, and the accompanying rise in prices, contributed to a darkening of the outlook, with business expectations for the year ahead dropping sharply during the month," he said.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

September 21, 2018 10:43 ET (14:43 GMT)