The U.S. Services Purchasing Managers’ Index (PMI) rose to 56.5 points in August, up from 54.6 the previous month, marking a significant increase in service sector activity, the highest in 20 months since December 2024.
The rise in service activity has been driven by growth in demand, with a notable and accelerated increase in new business. This growth has led to a considerable increase in employment, supported by robust confidence in economic prospects. Surveyed companies indicated that, despite a moderation of inflationary pressures compared to July, input costs and selling prices still remain above historic averages.
Despite the positive context, expectations for the coming year remain optimistic but still below trend, with many respondents mentioning uncertainty regarding future U.S. policy and geopolitical issues. “The growth of business activity in the private sector accelerated in August, marking a clear turnaround for the U.S. economy. Survey data suggests that GDP grew at an annualized rate of 3% in the third quarter, a solid increase from the meager 1.5% recorded in the previous quarter,” commented Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
The momentum of growth appears to have shifted from manufacturing to the services sector, where expansion reached its highest level since late 2024, while manufacturing showed steady, albeit slower, growth in production and new orders.
Source: www.infobae.com
