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US: Markit Manufacturing PMI improves to 53.6 in August vs. 51.9 expected

  • Markit Manufacturing and Services PMIs in US rose sharply in August. 
  • US Dollar Index extends daily rally toward 93.50 after the data.

The business activity in the US manufacturing sector is seen expanding at a robust pace in August with the IHS Markit's advanced Manufacturing PMI rising from 50.9 in July to 53.6. This reading came in better than the market expectation of 51.9.

Further details of the publication revealed that the Services PMI advanced to 54.8 from 50 and beat experts' forecast of 51. Finally, the Composite PMI climbed to 54.7 from 50.3.

Commenting on the data, “August data pointed to a further improvement in business conditions across the private sector as client demand picked up among both manufacturers and service providers," said IHS Markit economist Siân Jones. "Notably, the renewed increase in sales among service sector firms was welcome news following five months of declines."

Market reaction

The US Dollar Index edged higher after the PMI reports and was last seen gaining 0.73% on the day at 93.42.

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