There is no growth here

The S&P Global September US manufacturing and services PMI was little changed at around the flat line of 50 at 50.1 vs 50.2 in August. Manufacturing remained below 50 for the 10^th month in the past 11 but was up 1 pt m/o/m at 48.9. The services component fell .3 pts m/o/m to 50.2.

On services, “Companies often noted that high interest rates and inflationary pressure led to weak client demand which weighed on overall output. Some also mentioned cancellations of customer orders as market conditions worsened…Service sector firms saw a solid decrease in new business, following pressure on customer purchasing power from high inflation and interest rate hikes.” As for the outlook, “service providers were at their least optimistic in 2023 so far as strain on disposable incomes worsened.” With respect to inflation, and this commentary includes the manufacturing sector, “Hikes in wage bills, borrowing costs and material prices, with many panelists mentioning greater fuel expenses, drove up cost inflation in September.” And, there was some reluctance in passing on these higher costs “amid soft demand conditions and reduced purchasing power among customers.” The positive on the services side was the pick up in employment.