Preliminary data shows US services sector growth accelerated in August, lifting the composite PMI above expectations.
US flash PMI composite rose to 56.0 in August from 54.5 in July, driven by a stronger services reading. The services PMI climbed to 56.8, exceeding the 53.8 consensus and July’s 54.6 print.
Manufacturing PMI dipped slightly to 53.2, below the 53.7 consensus but above the prior 53.9. The data suggests resilient economic activity, particularly in services, amid mixed sector performance.
Markets are assessing the implications for Federal Reserve policy as stronger-than-expected growth may influence rate expectations.