Ekonomické zprávy
05.09.2024

U.S. services sector activity continues to expand in August - ISM

The Institute for Supply Management (ISM) reported on Thursday that its Services PMI came in at 51.5 per cent in August, recording a marginal gain of 0.1 percentage point from an unrevised July reading of 51.4 per cent. The latest figure indicated that economic activity in the U.S. services sector expanded for the second successive month in August and at a slightly faster pace than in the previous month.

Economists had predicted the indicator to slip to 51.1 in August.

A reading above 50 signals expansion, while a reading below 50 indicates contraction.

According to the report, the Production index declined by 1.2 percentage points to 53.3 per cent in August, indicating a continuing expansion after one month of contraction in June. In addition, the Employment measure dropped 0.9 percentage point to 50.2 per cent, indicating an increase in employment activity in the services sector in August for the second month in a row. Meanwhile, the New Orders gauge increased by 0.6 percentage point to 53.0 per cent, indicating new orders grew for the second consecutive month after contracting in June. The Inventories indicator surged by 3.1 percentage points to 52.9 per cent, returning to expansion territory after two straight months of contraction. Elsewhere, the Supplier Deliveries indicator jumped by 2.0 percentage points to 49.6 per cent, indicating faster performance for the second successive month. 

On the price front, the Prices index rose by 0.3 percentage point to 57.3 per cent, indicating that prices paid by services organizations for materials and services increased in August for the 87th month running.

Commenting on the data, Steve Miller, Chair of the Institute for Supply Management® (ISM) Services Business Survey Committee, noted that slow-to-moderate growth was cited across many industries, while ongoing high costs and interest-rate pressures were often mentioned as negatively impacting business performance and driving softness in sales and traffic.

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