Buyers Note Service Slowdown

The Institute for Supply Management also reported a decline in U.S. service sector activity.The service sector represents about 80% of the U.S. economy.Purchasing managers logged a reading of 50.2 for September,as opposed to 50.6 for August.That's a little better than a Reuters poll of economists had projected.The economists thought the service sector would come in at 50.0.Nonetheless,the service sector number marks the fifth straight monthly decline in the sector.It hasn't done that since 2003.Inflation in the sector was the lowest for a year,probably reflecting a decrease in commodity prices.The service sector index covers results from hotels,restaurants,banks and airlines.The Institute for Supply Management is located in Tempe,Arizona.Its purchasing manager surveys are important to economic policy makers.