Below is an interesting anecdote from a respondent in the public administration industry to
the ISM’s monthly surveyon the state of the American services sector:
“The federal government’s spending is increasing greatly as agencies execute their final budgets and utilise fiscal year 2013 appropriated funds prior to their expiration on September 30th. This has caused a major increase in procurement activity for goods and services. Budgets are uncertain for fiscal year 2014, so some items requiring funding in future years are not being purchased.”
The anecdote highlights the problems many companies who do a lot of business with the federal government are dealing with right now as members of Congress wrangle over the 2014 budget.
The ISM non-manufacturing survey’s headline index fell to 54.4 in September from August’s 58.6 reading, missing economists’ estimates for a smaller drop to 57.0 and indicating a significant slowdown in the pace of growth of the American services sector in September.
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