US August S&P Global services flash PMI 51.0 vs 52.2 expected

<ul><li><a href="https://www.forexlive.com/news/us-july-flash-sp-global-services-pmi-524-vs-540-expected-20230724/" target="_blank" rel="follow">Prior </a>was 52.3</li><li>Manufacturing 47.0 vs 49.3 expected (prior was 49.0)</li><li>Composite 50.4 vs 52.0 prior</li><li>"Cost pressures regained some momentum as
the rate of input price inflation quickened on the back of
greater fuel, wage and raw material costs."</li><li>US firms were more upbeat in their outlook for output
over the coming year in August</li><li>August data indicated only a fractional rise in
employment.</li></ul><p>This is a soft reading and the US dollar is selling off. Yields have fallen further as well.</p><p>Commenting on the data, Chris Williamson, Chief Business
Economist at S&amp;P Global Market Intelligence <a href="https://www.pmi.spglobal.com/Public/Home/PressRelease/3bfc5a90d9d2416a8f6709f78f90d014" target="_blank" rel="nofollow">said</a>:
</p><blockquote>“A near-stalling of business activity in August raises
doubts over the strength of US economic growth in the
third quarter. The survey shows that the service sector-
led acceleration of growth in the second quarter has
faded, accompanied by a further fall in factory output.</blockquote><blockquote>“Companies report that demand is looking increasingly
lethargic in the face of high prices and rising interest
rates. A resultant fall in new orders received by firms in
August could tip output into contraction in September as
firms adjust operating capacity in line with the
deteriorating demand environment. Hiring could likewise
soon turn into job shedding in the coming months after a
near-stagnation of employment in August.</blockquote><blockquote>
“Rising wage pressures as well as increased energy
prices have meanwhile pushed input cost inflation higher,
which will raise concerns over the stickiness of consumer
price inflation in the months ahead. One upside is that
weak demand is starting to limit pricing power, which
should help keep a lid on inflation around the 3% mark.</blockquote><p>The uptick in prices isn't a big surprise given the increase in oil prices:</p>

This article was written by Adam Button at www.forexlive.com.