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Robust private sector growth sustained in U.S.

Staff Writer |
September data revealed a strong increase in U.S. private sector business activity, with the rate of growth close to August’s seven-month peak.

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The latest expansion of private sector output was driven by a robust upturn in services activity, which contrasted with relatively subdued growth among manufacturing companies.

At 54.6 in September, the seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index was down slightly from 55.3 in August but still comfortably above the 50.0 no-change value.

Higher levels of private sector output have been recorded in each month since March 2016.

Robust business activity growth was supported by a further rise in new work received by private sector firms in September.

However, the latest increase in new orders was the slowest for three months.

Weaker new business growth contributed to the softest pace of job creation since June.

The moderation in employment growth was driven by the service sector, as manufacturing payroll numbers expanded at the quickest rate since December 2016.

Meanwhile, private sector cost inflation edged up to its strongest since June 2015.

Increased cost pressures reflected the steepest rise in manufacturing input prices for almost five years.

The composite index is based on original survey data from the IHS Markit U.S. Services PMI and the IHS Markit U.S. Manufacturing PMI.

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