US ISM Services PMI dropped from 64.1 to 61.7 in August, slightly above expectation of 61.3. Looking at some details, business activity/production dropped from 67.0 to 60.1. New orders dropped from 63.7 to 63.2. Employment dropped slightly from 53.8 to 53.7. Prices dropped from 82.3 to 75.4.
ISM said: “The past relationship between the Services PMI and the overall economy indicates that the Services PMI for August (61.7 percent) corresponds to a 4.4-percent increase in real gross domestic product (GDP) on an annualized basis.”
