Economic Data Roundup (09/06/2017)

9/6/17 12:00 PM

iStock-177853320.jpgThere were two important reports on the U.S. economy released this morning. First, the purchasing managers' index (PMI) from IHS Markit for the U.S. services sector, which accounts for a much larger share of the overall economy than manufacturing, ended August at 56.0. That was the 5th monthly improvement in a row, better than economists had anticipated, and the highest headline reading since November 2015. Under the hood, employment rose at the fastest pace in nearly two years and the pace of new business growth jumped due to “a greater willingness to spend among clients and improving market conditions.”



Input price inflation continued to rise in August but stronger demand conditions generally enabled companies to pass on the extra costs in the form of greater output charges, according to the report. Similarly, the Institute for Supply Management’s (ISM’s) non-manufacturing index, also released this morning, lifted to 55.3 in August, in line with expectations. Measures of production, new orders, and employment improved last month, and comments from surveyed managers were generally positive. Chris Williamson, chief business economist at IHS Markit, added that “August saw companies become more optimistic about the year ahead, with confidence across manufacturing and services climbing to the highest since January. Any hurricane-related impact is therefore likely to result in only a temporary lull, with stronger growth returning later in the year.”



Sources: Econoday, IHS Markit, ISM, FRBSL

Post author: Charles Couch