US ISM Services PMI rose from 52.7 to 54.5 in August, comfortably above expectation of 52.6. Looking at some details, business activity/production ticked up from 57.1 to 57.3. New orders rose from 55.0 to 57.5. Employment rose strongly from 50.7 to 54.7. Prices also rose from 56.7 to 58.9.
ISM said: “The past relationship between the Services PMI and the overall economy indicates that the Services PMI for August (54.5 percent) corresponds to a 1.6-percent increase in real gross domestic product (GDP) on an annualized basis.”
