Service-sector growth is slowing down.
The flash purchasing manager’s index on the US services sector was 54.4 in October, according to Markit Economics.
Economists had estimated that the index improved to 55.5 from 55.1.
The report noted that service-sector output growth fell to a nine-month low in October. It recorded the smallest increase in payrolls since February.
Chris Williamson, chief economist at Markit, wrote in the report, “The warning lights are also flashing brighter in relation to the outlook. Business optimism slipped to one of the lowest seen since the global financial crisis, and employment growth fell markedly in October.”
Services make up more than 80% of GDP and 86% of employment, according to Bank of America Merrill Lynch. And of late, the sector has been more resilient than manufacturing.