Services Growth Cooled Before U.S. Federal Shutdown: Economy

Service industries expanded in September at a slower pace than forecast as more corporate purchasing managers grew apprehensive about the U.S. economy leading up to the government shutdown.

The Institute for Supply Management’s non-manufacturing index dropped to a three-month low of 54.4 from the prior month’s 58.6, the Tempe, Arizona-based group said today. While readings above 50 indicate expansion, the September figure was below the lowest forecast in a Bloomberg survey of economists. Another report showed fewer Americans than projected filed applications for unemployment insurance last week.