Business Services | Third Quarter 2023

October 2023 – This issue of SOLIConnect includes a discussion with regard to a 4.0% decline in the Business Services Sector Index during Q3 2023, in line with the 3.7% decline experienced by the S&P 500. However, performance varied significantly by sector. HR Services, which is dominated by payroll processors that benefit from rising interest rates, was up 6% for the quarter, while Professional Staffing and IT Consulting were flat as concerns about rising unemployment and a potential recession receded. On the other hand, the Business Process Outsourcing sector (-8.6%) continued to decline due to concerns that generative AI applications will disrupt demand for traditional outsourced services and Marketing Services (-15.9%) declined as a result of disruptions to the media market caused by the actors and writers strike.

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