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flag U.S. service sector stagnated in September, first contraction since 2020, amid weak demand and supply chain issues.

flag The U.S. service sector showed no growth in September as the ISM services PMI fell to 50.0, missing expectations and marking the first contraction since May 2020. Business activity dipped to 49.9, new orders dropped sharply, and employment remained in contraction for a fourth straight month. flag Supplier deliveries slowed and backlogs increased, indicating persistent supply chain pressures. flag Meanwhile, the manufacturing PMI edged up to 49.1, still below the 50 threshold. flag Rising input costs, driven by tariffs, and weak demand across sectors like real estate and professional services signaled ongoing economic challenges.

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