Preliminary
data published by S&P Global on Thursday revealed that U.S. private sector
business activity expanded solidly in early August albeit at a slightly slower pace than in March, as
stronger growth in the services sector was offset by deeper contraction in manufacturing.
According to
the report, S&P Global flash U.S. Composite Purchasing Manager's Index
(PMI) Output Index came in at 54.1 early this month, marginally down from 54.3 in
July. Economists had
predicted the composite PMI to slip to 5351.
A reading above
50 signals an expansion in activity, while a reading below this level signals a
contraction.
S&P Global
flash services PMI checked in at 55.2 in August, up from 55.0 in July. The latest reading indicated that the
rate of activity growth across the service sector improved compared to July, falling just
shy of June’s 26-month high. Economists had expected the services PMI to drop to 54.0.
Meanwhile, S&P
Global flash manufacturing PMI fell to 48.0 in August from 49.6 in the previous
month. The latest print pointed to the steepest contraction in manufacturing
sector activity since December 2023 (47.9). Economists had anticipated the manufacturing PMI to remain unchanged at 49.6.