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US private-sector growth accelerates in August as services lead
S&P Global said the latest survey data are consistent with annualized growth near 3.0%, up from 1.5% in the prior quarter.
US private-sector growth accelerated sharply in August, driven primarily by a rebound in services activity, according to S&P Global’s Q3 survey data summarized by Action Forex.
The PMI Composite Output rose from 54.5 to 56.0, its highest level in 52 months, while PMI Services Business Activity climbed from 54.6 to 56.8, reaching a 20-month high. Manufacturing activity eased, with PMI Manufacturing slipping from 53.9 to 53.2, and PMI Manufacturing Output falling from 53.9 to 51.9, a 13-month low.
The report linked the stronger overall momentum to improved business confidence and firmer employment, while noting that manufacturing lost speed as precautionary inventory building faded and supply delays limited production.
Action Forex also said inflation pressure eased somewhat but remained elevated, leaving the Fed with a mixed but still firm backdrop, and it warned that August’s easing in prices could be vulnerable to another energy-related shock.