WASHINGTON—The U.S. services industry slowed modestly in September, while employment surged and a measure of prices paid by businesses for inputs fell to more than a 1–1/2-year low, suggesting underlying strength in the economy despite rising interest rates.
The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing PMI dipped to a reading on 56.7 last month from 56.9 in August. Economists polled by Reuters had forecast the non-manufacturing PMI falling to 56.0.
A reading above 50 indicates expansion in the services sector, which accounts for more than two-thirds of U.S. economic activity. The economy is slowing as the Federal Reserve aggressively tightens monetary policy to quell inflation….