August witnesses faster fall in US private sector output

According latest ‘flash’ PMI™ data from S&P Global, US private sector firms signaled a sharper fall in business activity during August. The decrease in output was the fastest seen since May 2020 and solid overall. The rate of contraction also outpaced anything recorded outside of the initial pandemic outbreak since the series began nearly 13- years ago.

The headline Flash US PMI Composite Output Index registered 45.0 in August, down from 47.7 in July, and indicated a second successive monthly decrease in total business activity.

The reduction in output was broadbased, with manufacturers and service providers registering lower activity. Service sector firms recorded the steeper rate of decline, as activity fell sharply, while goods producers saw a modest drop in output.