US services sector stalls as new orders slow to a crawl, employment weak

By Lucia Mutikani WASHINGTON (Reuters) -U.S. services sector activity stalled in September amid a sharp slowdown in new orders, while subdued employment added to mounting evidence of sluggish labor market conditions because of waning demand and supply of workers. The survey from the Institute for Supply Management (ISM) on Friday could gain more prominence after a lapse in funding undefined forced a shutdown of the U.S. government and delayed the release of the closely watched monthly employment report for September. The ISM said its nonmanufacturing purchasing managers index (PMI) fell to 50 last month, the breakeven level, from 52.0 in August. Economists polled by Reuters had forecast the services PMI easing to 51.7. The services sector accounts for more than two-thirds of U.S. economic