US ISM Services PMI rose from 56.7 to 56.9 in August, above expectation of 55.4. Business activity/production rose from 59.9 to 60.9. New orders rose from 59.9 to 61.8. Employment rose from 49.1 to 50.2. Prices dropped from 72.3 to 71.5.
ISM said: ” The services sector had a slight uptick in growth for the month of August due to increases in business activity, new orders and employment. Based on comments from Business Survey Committee respondents, there are some supply chain, logistics and cost improvements; however, material shortages remain a challenge. Employment improved slightly despite a restricted labor market.”
“The past relationship between the Services PMI and the overall economy indicates that the Services PMI for August (56.9 percent) corresponds to a 2.5-percent increase in real gross domestic product (GDP) on an annualized basis.”