(Repeats Nov. 3 column without change)
By John Kemp
LONDON, Nov 3 (Reuters) – U.S. businesses outside the manufacturing sector have started to report slower growth, as faster inflation, rising interest rates and heightened concern about the economic outlook hit household and business spending.
The Institute for Supply Management’s non-manufacturing index slipped to 54.4 in October (the 35th percentile for all months since 1997) from 56.7 in September (66th percentile) and 66.7 a year ago (99th percentile).
The non-manufacturing index, which covers businesses in services, transportation, construction, mining and farming, fell to its lowest level since May 2020, when the economy was in the first wave of the pandemic.
The employment component slipped to 49.1, the third time in five months it has fallen below the 50-point threshold dividing expanding activity from a contraction.
Service sector activity is highly correlated with the…
