S&P Global reports August US Manufacturing PMI at 53.2 as services sector surges

The US economy is sending mixed signals, but the overall picture looks pretty good. S&P Global’s flash PMI data for August shows manufacturing output dipping slightly to 53.2, down from July’s 53.9 reading, while the services sector roared ahead with a 56.8 print that pulled the composite index up to 56.0. That composite number is the highest reading in 20 months. For an economy that’s spent the better part of three years navigating rate cycles, trade disruptions, and the occasional existential crisis, hitting a 20-month peak in overall business activity is a quietly significant milestone. What the numbers actually mean PMI, or Purchasing Managers’ Index, works on a simple scale: anything above 50 means expansion, anything below means contraction. A reading of 53.2 in manufacturing means the sector is still growing, just not quite as fast as it was last month. The services sector is the real story here. At 56.8, that reading suggests businesses in everything from finance to hospitality to professional services are seeing meaningfully stronger demand. Services make up roughly two-thirds of US economic output, so when that sector accelerates, it tends to move the needle for the b...