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BCN-06
US-ECONOMY-SERVICES-INDICATOR-ISM
US services firms see growth ramp up in September: survey
WASHINGTON, Oct 6, 2020 (BSS/AFP) – The dominant US services sector saw growth accelerate in September, posting its fourth consecutive month of expansion, according to an industry survey released Monday.
The Institute for Supply Management’s services index rose 0.9 points to 57.8 percent, revving up after slightly slower growth in August as employment recovered following six months of contraction amid the Covid-19 crisis.
Employment rose 3.9 points to 51.8 percent, putting it above the 50 percent mark that indicates expansion.
However only nine industries saw job gains, while six continued to shed employees, according to the survey.
ISM survey chairman Anthony Nieves noted that 16 of the 17 services industries posted growth overall, but the recovery from the pandemic hit continues to face challenges.
“Respondents’ comments remain mostly optimistic about business conditions and the economy, which correlates directly to those businesses that are operating,” he said in a statement.
However, “There continues to be capacity and logistics issues, as business volumes have increased.”
In the survey, a respondent in the entertainment industry lamented a “bleak” outlook, while a construction executive said although business is recovering, “Lack of available labor is having a significant impact on our ability to fulfil orders.”
BSS/AFP/MMA/0850HRS