On August 21, S&P Global released PMI survey data showing that the U.S. composite output index rose to 56.0 in August, up from 54.5 the previous month, marking the highest level since April 2022. The unexpected surge in the services sector was the main driver of the overall acceleration, with the preliminary services PMI for August recorded at 56.8, significantly higher than July's 54.6, setting a new record since December 2024. A PMI reading above 50 indicates economic expansion. This data broke Wall Street's cooling expectations, as economists had originally anticipated a decline in the August services PMI to 54. S&P Global forecasts that the current third-quarter survey data indicates the U.S. annualized economic growth rate is close to 3.0%, doubling from 1.5% in the second quarter. Although inflationary pressures eased slightly in August, input costs and sales price growth remain high, and potential inflation risks still exist.
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