Mubasher: US private sector activity picked up in September, recording a slightly faster growth rate than the slowest pace since three years and a half in August.

US flash composite output index came in at 51 in September, compared to a final estimate of 50.7 in August, IHS Markit's purchasing managers’ index (PMI) data showed.

“Although picking up slightly, the overall rate of growth in September remained among the weakest since 2016, commensurate with GDP rising in the third quarter at a subdued annualized rate of approximately 1.5%,” IHS Markit’s chief business economist Chris Williamson said.

Subdued business expansion pointed to a sustained weakness in client demand during September.

“Jobs are now also being cut across the surveyed companies for the first time since January 2010, as firms have become more risk averse and increasingly eager to cut costs,”

Work backlogs posted a sharp drop, pointing to the dearth of pressure on business capacity.

Business expectations for the year ahead recovered from last month’s seven-year low.

Input costs fell for the second month in a row, mainly driven by lower average cost burden, while charges for goods and services were generally unchanged.

The headline gauge masked modest rises for goods producers and both services providers.

The headline IHS Markit flash US manufacturing PMI came in at 51 in September, edging up from the preceding month’s final estimate of 50.3. This marked the lowest level seen since nine months.

The PMI the flash services ticked up to 50.9, from 50.7 in the preceding month. This was still one of the weakest estimates during the past three years and a half, and was mainly attributed to the slowest growth of new work inflows since October 2009.

By 2:06 pm GMT, the US dollar index, a gauge of the greenback against six major peers, rose by 0.18% to 98.69.