Services Surveys Confirm Stagflation Scare: Growth Slows, Prices Re-Accelerate | ZeroHedge

Despite the plunge in 'hard' data in September, the Manufacturing PMI rose to six-month highs (but still sub-50). However, more notably,  the Services PMI tumbled to 50.1 (barely in expansion), its lowest level since January.

Source: Bloomberg

ISM Services – for once – agreed with PMI Services, sliding to 53.6…

Source: Bloomberg

…with new orders plunging and employment tumbling and prices sticky

Source: Bloomberg

As the PMI survey noted, In line with another substantial uptick in cost burdens, service providers hiked their selling prices in September.

The pace of charge inflation accelerated to the fastest since July as firms sought to pass through greater costs to customers. 

Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:

Finally, the economy therefore looks to be moving into the fourth quarter on a weak footing, hinting at slower GDP growth as we head toward the end of the year…

And just to rub some more salt into the wound – prices are rising…

So – growth slowing and prices rising – we love the smell of stagflation in the morning.

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