US services activity picks up speed in August
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The news: US services sector activity picked up in August for the third consecutive month and at the fastest pace in six months, as orders sharply accelerated.
The numbers: Data from the Institute for Supply Management (ISM) released Thursday saw its services index rise 1.9 points in August to 52, with reading about 50 indicating expansion.
The new orders index climbed 5.7 points to 56 in August, while the ISM’s business activity index climbed to a five-month high of 55.
The context: Steve Miller, chair of the ISM Services Business Survey Committee explained that survey commentary was again led by respondents’ “increasing citations of tariff impacts, with some indication that business activity and imports are being driven by an attempt to get ahead of additional price increases while preparing for the holiday peak season.”
Miller continued that August’s Services PMI was driven by expansion rates for business activity and new orders, but was offset by continued contraction in the employment index and the backlog of orders index which dropped to a 16-year low.
The source: ISM
