US Services Sector Surges in September While Brazil Contracts

Final September PMI data released on October 5 showed a sharp divergence between the United States and major Latin American economies. The US S&P Global Services PMI came in at 58.8 for September, slightly above the flash estimate of 58.7 and well ahead of August's 56.5, while the Composite PMI held at 58.4, beating the 58.3 estimate and marking a significant jump from August's 56.0. Readings above 50 indicate expansion, placing US services activity in firmly expansionary territory.

Brazil told a different story. Its S&P Global Services PMI fell to 49.2 in September from 50.5 in August, slipping below the 50 threshold into contraction. The Brazilian Composite PMI dropped further to 47.4 from 49.1 the prior month, signaling a broadening pullback in private-sector activity. Canada's services sector also remained in contraction at 48.3, though that reading improved from August's 46.8, and the Canadian Composite PMI edged up to 48.7 from 46.8, suggesting some stabilization even as conditions remained below breakeven.