Purchasing Managers' Index - Services, September 2014
Services PMI rose to 55.6 in September: A broad but modest increase in component indices
- The purchasing managers’ index for services (Services PMI) increased by 1.4 points to 55.6 in September. This increase was broad but modest with only the sub-index for suppliers’ delivery times making a negative contribution to PMI Services. The sub-index for business activity climbed to 59.2, accounting for the largest positive contribution to the Services PMI of 0.9 points.
- The sub-index for new orders rose slightly to 56.2 in September. The third quarter was characterized by strong demand, which was evident in the increase in orders and increased business activity. Planned business activity remains above 65, which indicates a positive outlook for the coming months.
- The employment sub-index climbed from 51.0 in August to 55.0 in September. With the exception of July 2014, this is its highest level since June 2011. Optimistic business plans combined with the fact that new orders, order backlogs and business activity remain in the growth zone, are among the likely causes for an increase in employment.
- The index for suppliers’ intermediate goods’ prices remains in the growth zone, though the rate of increase has become less steep compared to August. The index dropped from 53.3 in August to 52.5 in September. Despite this decrease, the average level for the past three months shows that the index has been higher than it was during the first half of the year.
PMI Services, September 2014