Source: Sharecast
The S&P Global services PMI business activity index nudged down to 52.1 from 52.5 in August, coming in above the flash estimate of 51.7. A reading above 50.0 indicates expansion, while a reading below signals contraction.
The survey also showed that input cost inflation was the strongest since June amid rising fuel prices. S&P said higher oil and gas prices, alongside international shipping disruption, resulted in many reports of greater prices paid for energy, fuel and transportation.
The September data marked two years of continuous job cuts across the service as a whole. However, S&P said the rate of decline in workforce numbers remained only modest and was the slowest since October last year.
Tim Moore, economics director at S&P Global Market Intelligence, said: "New order intakes increased only slightly in September and at the slowest pace for three months. Geopolitical tensions, squeezed consumer budgets and higher borrowing costs were cited as sales headwinds. Resilient demand for technology services remained the main bright spot, while some firms noted receding risk aversion among clients.
"September data marked two years of continuous cutbacks to employment numbers in the service sector amid ongoing efforts to reduce overheads. However, greater-than-expected business requirements seem to have helped to stem the jobs downturn in recent months, with the latest fall the slowest since October 2025.
"Surging fuel prices due to the Middle East conflict continued to drive up input cost inflation in September. This led to the sharpest increase in prices charged by service sector companies since May and therefore signalled a clear reversal of the slowdown seen in the middle of 2026."