US Services Sector PMI Rises to 55.4, Highest New Orders in Three Years and a Half
The US services sector grew in August with new orders hitting a three-and-a-half-year high while input prices climbed, sparking concerns over sustained inflation.
US service activity expanded in August as strong demand pushed new orders to their highest level since February 2023. The Institute for Supply Management reported the non-manufacturing PMI rose to 55.4 in August from 54.1 in July. Economists surveyed by Reuters predicted a reading of 54.2. The surge in new orders reached 60.9, up from 57.2 the previous month. Higher input prices averaged 72.6, an increase from July's 70.3 figure. These cost pressures indicate inflation may remain above Federal Reserve targets for some time. Sector leaders warned that rising costs could compel the central bank to raise interest rates before year-end.
