US S&P Global Composite PMI Flash (Aug) 56.0 (Prev. 54.5)
- "The survey data for the third quarter are currently pointing to annualized growth approaching 3.0%, up solidly from the 1.5% pace seen in the second quarter."
- "Jobs growth has also shown a welcome revival in August, with employers gaining in confidence as concerns fade over the negative economic impacts of tariffs and the conflict in the Middle East. However, the latter in particular remains a key area of concern for businesses, especially via the impact on supply lines and energy prices."
- "As reduced safety stock building and supply delays dampen factory production growth, the service sector is now playing a key role in driving a sustained US expansion, underscoring a dependency on consumer spending and financial services growth.”
A composite flash re-accelerating at this magnitude fits the pattern the S&P Global series has established as the stronger, more services-driven counterpart to the ISM surveys, and the two have diverged before, with the S&P print tending to run hotter during expansions led by services and consumer spending. The detail matters as much as the headline: the split here is between a services sector carrying the expansion and a factory sector held back by the running-down of earlier precautionary stock building and supply delays, a sequence that has historically followed tariff and geopolitical shocks as the front-loading impulse fades. The growth math the compiler attaches to the survey, an annualized pace near 3%, implies the upside surprise is broad rather than statistical, and on past occasions beats of this kind have repriced the front end hawkishly and supported the dollar, particularly where the commentary also flags a revival in hiring. The countervailing thread is the margin and supply-line caution around energy and freight, which in comparable episodes has shown up first in the input and output price sub-indices before the headline activity gauges. The follow-ons are the ISM prints, which will confirm or contradict the divergence, the prices-paid components within this survey, and whether the employment index strength carries into the labour data the Fed weights most heavily.