S&P Global’s latest PMI survey showed U.S. business activity strengthened in August, with the composite output index rising to 56.0 from 54.5 in July, the highest reading since April 2022. The gain was driven by a stronger services sector, where the flash PMI climbed to 56.8 from 54.6, beating economists’ prior expectation of 54 and marking its highest level since December 2024. A PMI reading above 50 typically signals expansion.
According to the data cited by BlockBeats, the release challenged Wall Street’s earlier expectation of cooling momentum and eased expectations for interest-rate cuts. S&P Global said the current third-quarter survey readings point to U.S. annualized economic growth approaching 3.0%, compared with 1.5% growth in the second quarter.
The report also showed inflation pressures eased slightly in August, but growth in input costs and selling prices remained elevated. That leaves a mixed picture: stronger activity on one side, and persistent inflation risks on the other.
S&P Global released its latest PMI survey data on Aug. 21, showing U.S. business activity strengthened in August. The composite output index rose to 56.0 from 54.5 in July, the highest level since April 2022.
The acceleration came entirely from an unexpectedly strong services sector. The flash services PMI came in at 56.8 for August, up from 54.6 in July and the highest reading since December 2024.
Services reading beats expectations
A PMI reading above 50 generally indicates expansion in economic activity. The latest figures came in stronger than expected. Economists had widely forecast the August services PMI to fall back to 54.
BlockBeats said the data undercut Wall Street’s earlier cooling expectations and helped cool expectations for interest-rate cuts.
Third-quarter growth seen nearing 3.0%
S&P Global said current third-quarter survey readings suggest the U.S. annualized growth rate is approaching 3.0%. That compares with 1.5% growth in the second quarter.
Inflation risks still linger
The report also showed that while inflation pressures eased slightly in August, the pace of increase in input costs and selling prices remained high. Even with faster economic growth, underlying inflation risks have not disappeared.
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