While US business signaled a broad stagnation in output at the end of the third quarter amid muted demand, hiring continued to grow, according to data from S&P Global released today.

Its advance Flash US Services Business Activity Index reached an eight-month low in September, falling to a reading of 50.2. Still, readings above 50 indicate growth.

Meanwhile, S&P Global’s Flash US Manufacturing Purchasing Managers Index rose to a reading of 48.9 in September, its highest reading in two months; however, readings below 50 point to contraction.

September’s data added to concerns over the trajectory of US demand conditions following interest rate hikes and elevated inflation, Siân Jones, principal economist at S&P Global Market Intelligence, said in a press release.

Still, employment grew.

“Subdued demand did not translate into overall job losses in September, as a greater ability to find and retain employees led to a quicker rise in employment growth,” Jones, principal economist at S&P Global Market Intelligence, said in a press release.

“That said, the boost to hiring from rising candidate availability may not be sustained amid evidence of burgeoning spare capacity and dwindling backlogs which have previously supported workloads,” she continued.

Inflationary pressures also remained; however, weak demand put a limit on firms’ ability to pass on costs to clients.