US PMI Manufacturing dropped to 49.9 in August, down from 50.4 and missed expectation of 50.5. That’s the lowest level in 119 months. PMI Services dropped to 50.9, down from 53.0 and missed expectation of 52.8. PMI Composite dropped to 50.9, down from 52.6.
Commenting on the flash PMI data, Tim Moore, Economics Associate Director at IHS Markit said:
“August’s survey data provides a clear signal that economic growth has continued to soften in the third quarter. The PMIs for manufacturing and services remain much weaker than at the beginning of 2019 and collectively point to annualized GDP growth of around 1.5%.
“The most concerning aspect of the latest data is a slowdown in new business growth to its weakest in a decade, driven by a sharp loss of momentum across the service sector. Survey respondents commented on a headwind from subdued corporate spending as softer growth expectations at home and internationally encouraged tighter budget setting.
“Manufacturing companies continued to feel the impact of slowing global economic conditions, with new export sales falling at the fastest pace since August 2009.
“Business expectations for the year ahead became more gloomy in August and remain the lowest since comparable data were first available in 2012. The continued slide in corporate growth projections suggests that firms may exert greater caution in relation to spending, investment and staff hiring during the coming months.”
