The latest Purchasing Managers' Index (PMI) from S&P Global shows a clear contrast between the rise in service sector activity and the weakness in manufacturing. The composite output index for the USA in September was 54, lower than the initial value of 54.4 and August's 54.6, but still indicates steady improvement in business activity at the end of the third quarter.

Different trends still exist between industries, with growth concentrated in the service industry and a worsening decline in manufacturing. At the same time, inflationary pressure has increased, with input costs and output prices reaching 12-month and 6-month highs respectively.

Seasonally adjusted US service sector PMI business activity index for September was 55.2, lower than the initial value of 55.4 and August's 55.7, but still shows significant monthly output growth in the service sector at the end of the third quarter, making it one of the strongest indices globally.

Service activities have been growing for 20 consecutive months, with the latest increases usually related to successful acquisition of new jobs, and many reports indicate that recent interest rate cuts have boosted demand in the service industry.