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ECONOMIC REPORT: U.S. service sector slows sharply in Sept.; ISM services index falls to 53.3%, lowest since April 2003
By Greg Robb, MarketWatch
Last Update: 10:18 AM ET Oct. 5, 2005
WASHINGTON (MarketWatch) - There was a broad-based moderation in the service sector economy in the aftermath of Hurricane Katrina, the Institute for Supply Management reported Wednesday.
The ISM nonmanufacturing index fell to 53.3% from 65.0% in August. This is the sharpest one-month decline since shortly after 9/11, said Ralph Kauffman, chair of the ISM non-manufacturing survey committee.
This is the lowest level since April 2003.
The drop was sharper than expected. Economists polled by Marketwatch expected the index to slip to 60.3 percent.
Despite the decline, the index is still above 50% for the 30th straight month. Readings over 50% in the diffusion index indicate expansion in these sectors.
Only eight of 17 industries grew in September, compared with 13 in August.
New orders fell to 56.6% in September from 65.8% in August.
The employment index fell to 54.9% from 59.6%.
The prices paid index rose to a record 81.4% in September from 67.1% in the previous month.
By Greg Robb, MarketWatch
Last Update: 10:18 AM ET Oct. 5, 2005
WASHINGTON (MarketWatch) - There was a broad-based moderation in the service sector economy in the aftermath of Hurricane Katrina, the Institute for Supply Management reported Wednesday.
The ISM nonmanufacturing index fell to 53.3% from 65.0% in August. This is the sharpest one-month decline since shortly after 9/11, said Ralph Kauffman, chair of the ISM non-manufacturing survey committee.
This is the lowest level since April 2003.
The drop was sharper than expected. Economists polled by Marketwatch expected the index to slip to 60.3 percent.
Despite the decline, the index is still above 50% for the 30th straight month. Readings over 50% in the diffusion index indicate expansion in these sectors.
Only eight of 17 industries grew in September, compared with 13 in August.
New orders fell to 56.6% in September from 65.8% in August.
The employment index fell to 54.9% from 59.6%.
The prices paid index rose to a record 81.4% in September from 67.1% in the previous month.