Services activity in the United States was flat in September, survey data showed Friday, as President Donald Trump鈥檚 tariffs and other factors weighed on the sector鈥攚ith business activity cooling and employment weak.
The Institute for Supply Management (ISM) services index dipped to 50.0 percent last month, from 52.0 percent in August.
A consensus forecast of economists by Briefing.com had instead expected the sector to be in expansion, with an anticipated reading of 51.7 per cent.
ISM survey chair Steve Miller flagged 鈥榳eakness in business activity and continued weakness in employment鈥� in the report.
鈥楥ommentary in general indicated moderate or weak growth, with more isolated observations of supplier delivery challenges,鈥� he said in a statement.
鈥楨mployment continues to be in contraction territory, thanks to a combination of delayed hiring efforts and difficulty finding qualified staff,鈥� Miller added.
The business activity index retreated in September, while employment was in contraction for the fourth straight month, ISM said.
鈥榃e are beginning to see the impact of the tariffs impact our business, particularly for food products from India, China, and Southeast Asia, coffee from South America, and apparel and electronics from Asia,鈥� said a survey respondent in accommodation and food services.
鈥極ur year-over-year cost increases are getting progressively greater,鈥� the respondent added.
Another respondent in the property sector said new construction is facing a tough market with housing values high and added costs from tariffs starting to filter through.
A respondent in the wholesale trade industry said that demand was 鈥榮imply weak.鈥�