US economic activity slows in August, according to PMI. image file
The US economy, as measured by the performance of the manufacturing and services sectors, slowed for the third month in a row, although it remained in the expansion phase during August.
The Composite Purchasing Managers’ Index (PMI) fell from 59.9 units in July to 55.4 in August, according to the preliminary reading of the index prepared by IHS Markit.
Thus the July Composite PMI reading remained in expansion territory or above 50 points, despite falling to its lowest level in eight months.
The result was lower than the 58.3 points analysts had expected in a survey conducted by the Investing.com financial portal.
For its part, the manufacturing PMI fell from 63.4 units in July to 61.2 in July, its lowest reading in four months, according to IHS Markit.
Finally, the services sector PMI fell from 59.9 units in July to 55.2 in August, its lowest level in eight months.
“Expansion slowed sharply again in August, with variable delta spreads [de covid-19] “It has led to weaker growth in demand, especially for consumer-oriented services, and further frustrated companies’ efforts to meet existing sales,” Chris Williamson, chief economist at IHS Markit, said in a statement. “Not only did supply chain delays set a new survey record, but the August survey saw growing frustrations related to employment.”
Publication date: 08/23/2021
Tags: PMI Composite Manufacturing Services for the US Economy
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