The U.S. economy in September continued its steady recovery from the sharp declines in the second quarter as demand and output strengthened, according to new business surveys. But the pace faltered in Europe and Asia, where new infections have led to new restrictions on activity.
U.S. service-sector and manufacturing companies reported solid growth in September, a positive signal for overall economic growth in the third quarter.
Data firm IHS Markit said Wednesday its composite Purchasing Managers Index for the U.S.—a measure of activity in the private sector—was 54.4 in September, down slightly from 54.6 in August. A reading above 50.0 indicates that activity is increasing, while a reading below points to a decline in activity.
Growth in the services sector slowed slightly to 54.6 in September from 55 in August, while in the manufacturing sector it accelerated to 53.5 from 53.1.
The numbers suggest the U.S. economy continues its slow and steady climb from the deep declines seen in the spring due to lockdowns and other restrictions imposed to curb the spread of the coronavirus.
