U.S. Economic Activity Slows in September Amid Delta, Supply-Shortages -- IHS Markit
By Xavier Fontdegloria
Growth in the U.S. private sector lost some momentum in
September as concerns on the Covid-19 Delta variant and persistent
supply-chain problems hit activity, according to a survey of
The flash reading for the U.S. Composite Output Index decreased
to 54.5 in September from 55.4 in August, data from IHS Markit
The reading signals a solid expansion in output, but at the
slowest pace for a year and far from the levels registered at the
beginning of the summer. The index is based on data from the firm's
PMI surveys for manufacturing and service sectors.
In September, growth in both the service and manufacturing
sectors eased, but the slowdown was led by a cooling of demand in
the service sector linked partly to the Delta variant spread, said
Chris Williamson, chief business economist at IHS Markit.
"The pace of U.S. economic growth cooled further in September,
having soared in the second quarter, reflecting a combination of
peaking demand, supply-chain delays and labor shortages," he
IHS Markit's flash U.S. Services Business Activity Index dropped
to 54.4 in September from 55.1 in August, a 14-month low and below
the 54.9 level expected from economists polled by The Wall Street
Service providers saw a slower rise in new business, while
employment levels were broadly unchanged, the report said. Capacity
and costs pressures remained elevated.
For goods producers, supply constraints and material shortages
showed no signs of easing and continued to constrain output
The IHS Markit Flash Manufacturing PMI fell to 60.5 in September
from 61.1 in August, a five-month low. Economists expected the
indicator to come in at 61.7.
"While manufacturers have seen far more resilient demand,
factories face growing problems in sourcing enough supplies and
labor to meet orders," Mr. Williamson said.
Write to Xavier Fontdegloria at firstname.lastname@example.org
(END) Dow Jones Newswires
September 23, 2021 10:20 ET (14:20 GMT)
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