US Private Sector Slows to 12-Month Low as COVID Concerns Persist

The growth of the US private sector continued to expand in September but cooled to the weakest pace in 12 months.

The IHS Markit Flash US Composite PMI Output Index fell to 54.5 in September, down from 55.4 in August. This is the slowest growth since September 2020.
Services slipped to 54.4 from 55.1 in the previous month, marking the lowest in 14 months, as COVID-19 concerns continued.
The decline is due to the slower growth in new business, which marked the fourth month of deceleration. Sales also fell due to a drop in new export orders.
Manufacturing fell to 60.5 from 61.1 in August, the lowest in five months. Manufacturing output slipped to 55.2 from 56.7, to hit an 11-month low.
New order growth moderated to the slowest in 13 months, while backlogs rose by the second-fastest pace in over 12 years of data collection.
Input costs posted a steep climb, with the cost inflation hitting a four-month high and the second-highest on record.

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