The ISM Non-Manufacturing Index for September dipped to 56.7% (consensus 56.0%) from 56.9% in August. The dividing line between expansion and contraction is 50.0%. The September reading marks the 28th straight month of growth for the services sector.
The key takeaway from the report is that business activity for the non-manufacturing sector held pretty steady in September and was stronger than expected. While a slightly lower reading versus August connotes some slowing, the slowdown for the largest sector of the economy isn’t significant enough to fuel a belief that the Fed is about to pivot soon with its monetary policy.