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US Composite PMI flash points to faster private-sector growth in August
The flash composite reading rose to 56.0 from 54.5 in July, with services strengthening while manufacturing momentum is expected to soften.
A flash reading of the S&P Global Composite PMI suggests US private-sector activity will gain momentum in August, rising to 56.0 from 54.5 in July, where readings above 50 signal expansion. The data, due alongside S&P Global’s preliminary August PMI release, is closely watched as an early read on business conditions in the largest economy.
The outlook is mixed across sectors. Services are expected to improve to 56.8 from 54.6, while manufacturing is forecast to ease to 53.2 from 53.9, indicating weakening momentum in the manufacturing sector even as overall activity strengthens.
S&P Global’s Chief Business Economist Chris Williamson said the third quarter is showing the fastest output growth for over four years, with the expansion picking up further momentum in August. He also said the survey data for the third quarter are pointing to annualized growth approaching 3.0%, up from a 1.5% pace in the second quarter.
S&P Global will release preliminary figures for the Manufacturing PMI, Services PMI, and Composite PMI, and any results that differ meaningfully from expectations could shift rate and currency expectations. The article notes that the market consensus expects a mild slowdown, including a decline in the Manufacturing PMI to 53.8 and an easing in the Services PMI to 54.0.