S&P Global's flash US composite PMI came in at 54.4 in September, down from 54.6 in August. Economists had expected the index, which captures activity in both the services and manufacturing sectors, to tick down slightly.
The services component of S&P's report showed the index registered 55.4 this month, down from 55.7 in August. Meanwhile, manufacturing activity continued to lag, falling to a reading of 47 from 47.9 the month prior and hitting a 15-month low.
Any reading above 50 for these indexes represents expansion in the sector; readings below 50 indicate contraction.
“The early survey indicators for September point to an economy that continues to grow at a solid pace, albeit with a weakened manufacturing sector and intensifying political uncertainty acting as substantial headwinds," Chris Williamson, the chief business economist at S&P Global Market Intelligence, wrote in the release.
The survey's future output index, which, measures optimism about the output in the year ahead, hit its lowest level since October 2022.
“Business sentiment, demand, hiring and investment are being subdued by uncertainty surrounding the Presidential Election, casting a shadow over the outlook for the year ahead at many firms," Williamson wrote.