Contraction in the manufacturing sample is easing while expansion in the services sample is evaporating, making for a September composite PMI score of 50.1. This is right at the breakeven 50 line to indicate virtually no growth in general activity in September compared to August.

Manufacturing's 48.9 is up a full point from August but is still the fifth straight sub-50 score. Nevertheless, contraction in new orders and output is easing this month though demand is still described as"subdued". The sample's inventories are heavy.

Service's 50.2 is the eighth straight above 50 but just barely. New orders are contracting at the sharpest pace of the year with the sample blaming high interest rates and inflation. Some respondents also reported cancellations of existing orders.

Looking at both sectors combined, costs are up on wages, borrowing rates, and higher bills for materials. Yet pass through to customers is difficult given weakness in demand. Employment gains in the samples remain solid.

These results will lift forecasts for ISM's manufacturing index but lower those for ISM's services index, the latter of which has been noticeably outperforming the PMI report. They also leave Econoday's Relative Performance Index at minus 4, very near the zero line to indicate that recent US economic data on net are coming in within consensus forecasts.

Services have held the 50 column the last seven reports but have been noticeably slowing with the consensus for September at 50.2 versus August's 50.5. Manufacturing, at 47.9 in August, is expected at 47.8 in July.

The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector output by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. The flash data are released around 10 days ahead of the final report and are typically based upon around 85 percent of the full survey sample. The report tracks changes in variables such as new orders, stock levels, employment and prices across both manufacturing and services. Production is also tracked, defined as"production" for manufacturing and"output" for services. Results are synthesized into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster output is growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The data are produced by S&P Global.

Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.