Abstract：Gold was trading around $4,141 an ounce on Monday after a closely watched gauge of United States service-sector activity came in slightly below expectations for September, according to Kitco News. The Institute for Supply Management (ISM) reported that its Services Purchasing Managers Index (PMI), a survey-based measure of business conditions, eased to 54.9 from 55.4 in August.
Gold was trading around $4,141 an ounce on Monday after a closely watched gauge of United States service-sector activity came in slightly below expectations for September, according to Kitco News. The Institute for Supply Management (ISM) reported that its Services Purchasing Managers Index (PMI), a survey-based measure of business conditions, eased to 54.9 from 55.4 in August.
ContentsServices Activity Still Expanding, But at a Slower Pace
The September reading was slightly worse than expected, with economists looking for 55, Kitco reported. For readers new to these surveys, readings above 50 signal expansion in activity and readings below 50 point to contraction; the further a number sits from 50, the faster or slower the pace of change. At 54.9, the index still points to growth in the service sector, which covers businesses such as banks, restaurants, transport firms and healthcare providers, but the pace cooled from August.
Steve Miller, Chair of the ISM Services Business Survey Committee, said the Business Activity Index stayed in expansion territory in September, falling 5.2 percentage points to 56.5 percent from August's 61.7 percent. The New Orders Index, which tracks new demand coming in, registered 59.8 percent, down 1.1 percentage points from 60.9 percent in August. The Employment Index moved back into expansion for the first time in three months, at 50.1 percent, a 2.3-percentage point rise from 47.8 percent in August.
Miller said the employment reading's return above 50 appeared to stem from rising backlogs along with high levels of business activity and new orders. Even as business activity and new orders growth rates eased a little, the Backlog of Orders index reached 58.3 percent, its highest level since July 2022.
The ISM noted that 13 industries reported growth in September, one more than the previous month, while four reported contraction. Miller said the September Services PMI reading of 54.9 percent was 0.8 percentage point above the 12-month average of 54.1 percent, and that the 12-month average has now risen for nine straight months.
Prices Paid Index at 74%, Highest Since July 2022
The Prices Index, which surveys what businesses pay for inputs, registered above 70 percent for the sixth time in seven months. At 74 percent in September, it was 1.4 percentage points above August's 72.6 percent and the highest since July 2022, when it stood at 74.5 percent. Miller said the index has exceeded 60 percent for 22 straight months, and its 12-month average rose 0.5 percentage point to 69 percent, the highest since March 2023.
The Supplier Deliveries Index came in at 53.2, up 1.9 percentage points from 51.3 percent in August. Miller said this was the 22nd consecutive month the index has been in expansion territory, which indicates slower supplier delivery performance. In these surveys, slower deliveries can reflect either stronger demand or supply constraints, and the ISM's own commentary pointed to the latter.
Miller said tariffs and fuel cost impacts were the most cited issues affecting respondents' supply chains, with fuel costs mentioned twice as often as any other single issue affecting performance. Supply chain constraints were also a top concern and were affecting both lead times and costs, he added.
Gold Holds a Fractional Gain as the Data Lands
Kitco reported that spot gold had been declining from its earlier highs since the North American open, and last traded at $4,141.73 per ounce, a slight gain of 0.03% on the daily chart. Spot gold refers to precious metal traded for immediate delivery, as opposed to futures contracts that settle at a later date. The report did not attribute the move to the ISM data, and it did not include Treasury yields, the dollar index or analyst commentary on gold's direction.
The excerpt also does not state the exact release time of the ISM report beyond “Monday morning,” nor whether the August headline figure was revised. It contains no information on Federal Reserve policy implications, and no forecast for the next PMI reading. Those gaps are noted here rather than filled with estimates, because the available material does not support them.
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