fxs_header_sponsor_anchor

News

US: S&P Manufacturing PMI drops to 51.3 in August, Composite PMI slumps to 45

  • S&P Global Composite PMI for the US continued to decline in August.
  • US Dollar Index continues to push lower on weak PMI figures. 

The data published by S&P Global showed on Tuesday that the business activity in the US private sector contracted at a stronger pace in early August than it did in July with the Composite PMI falling to 45 from 47.7. The Manufacturing PMI declined to 51.3 from 52.2 and the Services PMI plunged to 44.1 from 47.3. Both of these readings fell short of market expectations.

Commenting on the data, "August flash PMI data signalled further disconcerting signs for the health of the US private sector. Demand conditions were dampened again, sparked by the impact of interest rate hikes and strong inflationary pressures on customer spending, which weighed on activity," noted  Siân Jones, Senior Economist at S&P Global Market Intelligence.

"One area of reprieve for firms came in the form of a further softening in inflationary pressures," Jones further noted. "Input prices and output charges rose at the slowest rates for a year-and-a-half amid reports that some key component costs had fallen."

Market reaction

The dollar came under heavy bearish pressure after the disappointing PMI surveys and the US Dollar Index was last seen losing 0.45% on the day at 108.46.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.


RELATED CONTENT

Loading ...



Copyright © 2024 FOREXSTREET S.L., All rights reserved.