The US August Composite PMI Hits Four-Year High, Easing Rate Cut Expectations

BlockBeats News, August 21, Friday, S&P Global released the latest PMI survey data, which showed that the US Composite Output Index rose strongly from last month's 54.5 to 56.0 in August, reaching its highest level since April 2022.

This overall acceleration was driven entirely by a surprising surge in the service sector. The August Services PMI recorded a preliminary value of 56.8, significantly higher than July's 54.6, setting a new record high since December 2024. Generally, a PMI reading above 50 indicates that the related economic activity is in an expansionary state.

This data completely shattered Wall Street's previous cooling expectations. Economists had initially expected that the August Services PMI would fall to 54.

S&P Global predicts that the current third-quarter survey data indicates that the US annualized economic growth rate is approaching 3.0%. Compared to the second quarter's 1.5% growth rate, this number has seen a solid doubling. However, the economy's rapid pace is still accompanied by lurking inflation risks. The latest report shows that although inflation pressure eased slightly in August, the pace of input costs and selling prices remains elevated.