New York, October 6-- Economic activity outside the manufacturing sector slowed moderately in September from the previous month's pace, but it still expanded at a healthy clip, according to a private research group's latest survey.
The Institute for Supply Management's September nonmanufacturing index fell to 56.7 from the prior month's 58.2 reading. The nonmanufacturing index is comprised mostly of services. Index readings above 50 indicate expansion of activity and prices in the non-manufacturing sector, while readings under 50 denote contraction. September marks the 18th consecutive month of expansion.
Economists polled by Dow Jones Newswires and CNBC had expected a reading of 59.0.
The employment index increased to 54.6 from the 52.5 reported in August.
Ralph Kauffman, chair of the ISM nonmanufacturing business survey committee, said in a telephone conference with reporters that the "employment gain was encouraging," with the index now at its third-highest reading ever. "Managements are not anticipating a drop off in business, rather they expect growth, but seem to be hiring temporary workers rather than committing to permanent hires."
Also within Tuesday's report, the new-orders index held relatively steady at 58.5 from the 58.6 posted in August. Inflation pressures moderated slightly, with the prices index falling to 67.1 from 70.0 in the prior month.
