The service industry in the United States grew at a slower pace in September, according to the Institute for Supply Management’s nonmanufacturing index.
The ISM index declined to a reading of 54.4 in September from 58.6 the prior month, the biggest decrease since November 2008, according to the Tempe, Ariz.-based group. A reading above 50 shows expansion.
The median estimate by economists was 57, according to Bloomberg News.
The first government shutdown in 17 years threatens to slow demand for everything from auto purchases to air travel, Bloomberg reported.
“What happens over the next few weeks with the fiscal debate is really going to have an impact on confidence and sentiment for the rest of the year,” Thomas Simons, an economist at Jefferies in New York told Bloomberg.
Because of the shutdown of the federal government, the Commerce Department report on factory orders was not released Oct. 3.