U.S. sector PMI data hints at growth in several sectors in September

U.S. sector PMI data for the month of September hinted at a growth in several sectors indicating contraction to two, as basic materials saw a renewed fall in output. However, the rate of contraction was just marginal. Nevertheless, the fall in consumer services activity fell markedly at the end of third quarter. The pace of fall was the slowest in the current eight-month sequence of contraction. The healthcare sector continued to see the strongest performance in business activity at the end of the third quarter.

In the meantime, three sectors saw more rapid rises in output in the midst of reports of strengthening client demand after the easing in coronavirus disease 2019 restrictions. Technology companies saw the second most rapid upturn of the seven monitored sectors, which was also the fastest since July 2018. Consumer goods companies recorded a marked pick-up in activity, as the rate of growth accelerated to the steepest since last November. The industrials sector also recorded a solid rise in output.

Finally, financial companies saw a marked deceleration in the pace of activity growth in September. The rate of growth weakened markedly from August’s recent peak.