The August 2025 S&P Global US Composite PMI indicates a decline, reflecting slower growth in the service sector while manufacturing continues to rise.
Overall PMI Results
The August 2025 S&P Global US Composite PMI registered a decrease to 54.6, down from 55.1 in July. This indicates a moderation in economic growth, which could affect risk assets influenced by macroeconomic trends.
Service and Manufacturing Sector Dynamics
According to S&P Global, service sector activity moderated in August with a PMI of 54.5 compared to 55.7 in July. Conversely, manufacturing saw a significant increase with a PMI of 53 versus 49.8, marking the fastest pace since May 2022.
Market and Inflation Expectations
Market reactions to the PMI data were muted. Investors are closely observing inflationary pressures and potential policy changes. Chris Williamson, Chief Business Economist at S&P Global, stated that slower growth primarily reflected a moderation in US service sector activity despite increasing manufacturing output. Rising input costs are highly influenced by tariffs, raising concerns about long-term growth projections.
Overall PMI indicators suggest that the US economy remains on an expansion path; however, the slowdown in the service sector may impact investors and financial markets in the future.
