U.S. services industry activity nudged up in September, but growth is being restrained by a persistent shortage of inputs and the resulting high prices as the pandemic drags on. The Institute for Supply Management said their non-manufacturing activity index edged up to a reading of 62 last month from 61 in August. A reading above 50 indicates growth in the services sector, which accounts for more than two-thirds of U.S. economic activity.
The U.S. trade deficit raced to a record high in August, boosted by imports as businesses rebuild inventories, the latest sign that economic growth slowed in the third quarter. The trade deficit surged 4.2% to $73.3 billion last month, the highest since the government started tracking the data. Trade has subtracted from US GDP growth for 4 straight quarters. The report followed on the heels of government data last Friday showing high inflation sharply cutting into consumer spending in July.
Shares of PepsiCo are more than 1% higher after the food and beverage giant reported better-than-expected third-quarter earnings despite higher supply chain costs. The company also raised their full-year forecast.