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The US services sector cooled slightly in September on slower growth in new orders and employment, according to survey data released Wednesday. bulletin news

The services index of the Institute for Supply Management (ISM) edged down to 53.6 percent last month, from 54.5 percent in August.

The reading sits above the 50-point mark signaling growth, and ISM said Wednesday that the services sector has expanded for a ninth straight month.

“There has been a slight pullback in the rate of growth for the services sector, which is attributed to slower rates of growth in the new orders and employment indexes,” said ISM survey chair Anthony Nieves in a statement.

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But he added that “the majority of respondents remain positive about business conditions” even if some had worries about challenges ahead.

Activity in services is holding up even as the manufacturing sector has been struggling after the US Federal Reserve embarked on an aggressive campaign to lower inflation by lifting interest rates.

The rate hikes are expected to weigh on consumer demand and business expansion.

In September, 13 industries reported growth while five saw declines.

While the business activity index picked up from August, the new orders index slipped 5.7 percentage points to 51.8 percent, according to the ISM report.

There was a “higher level of orders” in the past month, said a survey respondent in transportation and warehousing, adding that “business activity is stabilizing to last year’s numbers.”

Another respondent in retail trade said: “Business is ramping up in preparation for the holiday season. Our supply chain is strong.”

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