Index tracking U.S. services sector activity falls to 3-year low
- Courtenay Brown, author of Axios Macro
An index that tracks activity within the services industry fell to a 3-year low in September, while a gauge of hiring within the sector dropped to the lowest level since 2010, according to the ISM non-manufacturing activity survey.
Why it matters: It’s the latest indicator pointing to an economic slowdown in the shadow of a trade war between the world's 2 largest economies, following the 2nd straight month of contraction in the U.S. manufacturing sector. While the services industry is still growing, this is the first sign that the all-important services industry — which makes up a way bigger slice of the economy than manufacturing (about 70%) — is starting feeling the blow.
Go deeper: How the China trade war threatens U.S. manufacturing jobs