US August S&P Global Services PMI Rises to 56.5, Composite Hits 52-Month High
The US services sector expanded at its fastest pace since December 2024, with the S&P Global services PMI rising to 56.5 in August from 54.6 in July, slightly below the preliminary reading of 56.8. The composite PMI climbed to 56.0, marking 52 consecutive months of growth. Survey data point to a 3.0% annualized third-quarter GDP growth, up from 1.5% in the prior quarter, as private-sector activity accelerates.
The S&P Global US services PMI rose to 56.5 in August from 54.6 in July, remaining below the flash estimate of 56.8 but still marking the highest level since December 2024.
The S&P Global US composite PMI recorded 56.0 in August, up from 54.5 in July, marking the 52nd consecutive month of expansion. Services activity growth accelerated, while manufacturing continued to grow but at a slower pace. Based on survey data, the US economy is outperforming other major global economies. S&P Global Market Intelligence noted that private-sector business activity growth accelerated in August, indicating a notable shift in US economic momentum. The survey data point to an annualized third-quarter GDP growth rate of 3.0%, a significant improvement from the previous quarter's 1.5%.
Employment growth picked up in August, with improved confidence among manufacturers and service providers. New hiring was broadly tied to meeting demand, while firms also prepared for future growth, with concerns over the Middle East conflict easing. Supply delays remained prominent, particularly in manufacturing, and overall price pressures stayed above historical averages. Growth momentum has shifted from manufacturing to services, with the services sector expanding at its fastest pace since late 2024, while manufacturing output and new orders growth slowed.