Markit's US services PMI ticks up in September

Markit’s final US services purchasing managers’ index rose to 52.3 in September, up from 51.0 in August and the flash estimate of 51.9.

This signalled the fastest upturn in service sector output since April.

Adjusted for seasonal influences, the final US Composite PMI Output Index ticked up to 52.3 from 51.5 in August, marking the fastest rise in private sector business activity since April. However, new business volumes and employment numbers expanded at slower rates.

Chris Williamson, chief business economist at Markit, said: “Coming hard on the heels of the IMF’s downgrade to the US economic outlook, the upturn in the PMI is a welcome development and suggests that the pace of economic growth gained some momentum in September.

“However, take a longer look and it’s clear that this is by no means a robust upturn. Even with the latest increase the surveys are indicating that the economy is growing at an annualised rate of only 1%.”