US services PMI hits 56.8 in August, strongest since December 2024
This digest was compiled by AI from multiple sources — links to the originals are below.
U.S. services sector growth accelerated in August, with the S&P Global flash services PMI rising to 56.8, the highest since December 2024. The composite output index climbed to 56.0, the strongest since April 2022, while manufacturing PMI eased to a five-month low of 53.2. S&P Global said third-quarter annualized growth is on track to approach 3.0%, up from 1.5% in the second quarter.
Key Facts
- The S&P Global flash services PMI rose to 56.8 in August, the highest since December 2024, from 54.6 in July.
- The composite output index increased to 56.0, the highest since April 2022, from 54.5 in July.
- The manufacturing PMI eased to 53.2, a five-month low, from 53.9 in July.
- S&P Global said third-quarter annualized growth is on track to approach 3.0%, up from 1.5% in the second quarter.
- Economists polled by Reuters had expected the services PMI to ease to 54.0 and the manufacturing index to hold at 53.9.
Services Sector Surge
The services PMI rose to 56.8 in August, the highest since December 2024, from 54.6 in July. New services business growth was the fastest since December 2024, allowing services hiring to grow by the most in 19 months. Chris Williamson, chief business economist at S&P Global Market Intelligence, said U.S. business is booming with the fastest output growth for over four years in the third quarter.
Manufacturing Slowdown
The manufacturing PMI eased to 53.2, a five-month low, from 53.9 in July. Order growth slowed for a fourth straight month, and factory output growth was the weakest in 13 months. The slowdown reflects reduced safety stock building and supply delays from the U.S.-led war with Iran, which has effectively closed the Strait of Hormuz.
Economic Growth Outlook
S&P Global said the survey data for the third quarter point to annualized growth approaching 3.0%, up from 1.5% in the second quarter. The composite output index rose to 56.0, the highest since April 2022, from 54.5 in July. Williamson noted the service sector is playing a key role in driving a sustained U.S. expansion, underscoring a dependency on consumer spending and financial services growth.
1 source
US services PMI hits 56.8 in August, strongest since December 2024
