U.S. Private Sector Output Growth is Slowest in 17 Months -- IHS Markit
September 21 2018 - 10:58AM
Dow Jones News
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)
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