Bonds & Rates
Home›Bonds & Rates›Economy›US PMIs in focus for steady growth and a potential USD…
US PMIs in focus for steady growth and a potential USD reaction
Markets expect August’s Manufacturing PMI to ease to 53.8 and Services PMI to 54.0, which could shift rate and dollar expectations.
S&P Global is set to publish preliminary August Purchasing Managers’ Indices for the United States, covering the Manufacturing PMI, the Services PMI, and a Composite PMI that combines both. The reports, based on private sector executives’ opinions on business conditions, are designed to offer an early read on momentum in the economy, with readings above 50 indicating expansion and below 50 signaling contraction. FXStreet notes that July’s Composite PMI rose sharply to 54.5 from 51.9, its best performance since October 2025, though S&P Global’s Chief Business Economist Chris Williamson cautioned that manufacturing activity slowed due to supplier delays linked to the Middle East conflict. The preview for August points to a mild slowdown, with the Manufacturing PMI expected to tick down to 53.8 from 53.9, and the Services PMI easing to 54.0 from 54.6. According to FXStreet, investors will also be watching how August compares with other developed economies, since July and August data are seen as consistent with steady GDP growth and support the view of US economic exceptionalism amid weaker global conditions. The piece also highlights that the prior month warned some of the gains could be short lived, citing one off hospitality spending linked to World Cup events and upside price pressures that may weigh on demand. FXStreet adds that a larger than expected slowdown could raise concerns about the economic outlook, reinforcing recent worries after disappointing US Nonfarm Payrolls. That, in turn, could add bearish pressure to the US dollar, which the outlet says has been hit this week after the US Treasury’s plan to increase purchases of long term government debt to help address a bond market crisis, while a positive surprise is expected to lift confidence, though FXStreet suggests the dollar impact may be limited unless the reaction is strong.