But the survey suggested stronger demand from Europe and Africa, and a few economists saw it pointing to more normal growth rates rather than potential stagnation. But the weakening outlook in the United Kingdom, where the services PMI has now fallen for the third consecutive month and is approaching 50, which separates expansion from contraction, could give the Bank of England cause for concern.
France managed a better-than-expected performance, with its PMI reading coming in at 51.9 – a two-month high.
But the report also found that total new work remained unchanged for the second successive month, which means that new order intakes have now been stagnant or near-stagnant since June.
That said, the degree of confidence was the weakest registered in Survey history.
India’s services output grew at a slower pace in September than the month before, weighed down by tough economic conditions, a survey showed on Tuesday.
At 10:00 a.m., ISM will publish its latest non-manufacturing index, and economists estimate it at 57.5, down from 59.0.
While the rate of job creation eased from August, companies continued to increase their staffing levels in September. Average service sector charges in the euro area rose marginally in September, ending an unbroken sequence of decline that started in late-2011.
The Nikkei/Markit Hong Kong purchasing managers’ index (PMI), which tracks business conditions in the private sector, including manufacturing, services, retail and construction, was 45.7 last month, up from August’s 76-month low of 44.4.
Chris Williamson, chief economist at Markit, said: “Weakness is spreading from the struggling manufacturing sector, hitting transport and other industrial-related services in particular. There are also signs that consumers have become more cautious and are pulling back on their leisure spending, such as restaurants and hotels”.
The global sub-index measuring output prices slipped to 49.8 from 50.2, its lowest reading in over three years.
Business expectations of longer term growth in the sector sank to the weakest level since August 2014.