Services carry the expansion
S&P Global’s flash US Composite PMI Output Index rose to 56.0 in August from 54.5 in July, the strongest pace of business expansion since April 2022. A reading above 50 signals month-over-month growth.
The acceleration was led by services: the Services Business Activity Index rose to 56.8, its highest level in 20 months. Manufacturing weakened, with the Manufacturing Output Index falling to 51.9 and the headline Manufacturing PMI slipping to 53.2, though both remained above the expansion threshold.
Why it matters
The survey points to a US expansion that is becoming more dependent on services and consumer-facing activity as factory growth cools. S&P Global said employment rose at the fastest rate since January 2025 and business expectations reached a nine-month high.
Price pressures moderated during August, especially for selling prices, but input costs remained elevated amid energy costs, supply constraints and tariffs. That mix—stronger activity alongside slower price increases—will be closely watched for its implications for growth and inflation.
Flash results are an early estimate based on roughly 80% to 90% of survey responses; S&P Global is scheduled to publish final August manufacturing and services data in early September.
Sources: S&P Global Flash US PMI and Trading Economics’ US Composite PMI page.
