U.S. Services Gauge Drops to Three-Year Low as Hiring Slows
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America’s service industries joined manufacturing in taking a big step back last month, fueling concerns that the global slowdown and trade war are weighing more on the broader economy. Stocks, the dollar and Treasury yields all fell after the report.
The Institute for Supply Management’s non-manufacturing index dropped 3.8 points to 52.6 in September, the lowest since August 2016 and well below the most pessimistic forecast in a Bloomberg survey, according to data Thursday. Growth in orders and business activity slowed abruptly, while the employment gauge registered its weakest print in more than five years.
The weakening in U.S. services mirrored developments in Europe, where Germany registered a sharp slowdown in services activity. IHS Markit reported its gauge dropped to a three-year low of 51.4 in September from 54.8 a month earlier.
Optimism about the economy falls to three-year low, CNBC All-America Economic Survey finds
- CNBC’s All-America Economic Survey shows just 23% of Americans believe the economy will improve in the next year, the lowest level of optimism in three years.
- Forty-eight percent of the public rate the economy as excellent or good, down from 51% in May.
- Fifty percent now disapprove of President Trump’s handling of the economy, the worst of his presidency.
- The survey of 800 Americans nationwide was conducted last week.