Economic activity in the US services sector increased in September but at a slower rate than in August, according to the Institute for Supply Management’s Services PMI. The measure of economic activity in the services sector decelerated to a reading of 56.7% in September from a reading of 56.9% in August.

“The services sector had a slight pullback in growth for the month of September due to decreases in business activity and new orders,” said Anthony Nieves, chair of the ISM’s Services Business Survey Committee. “Employment improved and supplier deliveries slowed at a slightly slower rate.”

Readings of above 50.1% in the Services PMI generally indicate expansion of the overall economy.

The employment activity index portion of the Services PMI rose in September to a reading of 53.0% from 50.2% in August. It had contracted in June and July.

Comments from respondents include: “Organizational growth continues, although hiring continues to be a challenge,” and “Cannot find qualified applicants — they require greater incentives because they have choices.”

The report is based on a survey of supply executives in the US services sector.