September 06, 2023 | 10:41
U.S. ISM Services PMI: Hot in August
Once again, the U.S. economy is proving to be more resilient than expected. The ISM services PMI surprisingly jumped 1.8 pts to a six-month high of 54.5 in August. All sub-components rose, with the employment index leading the charge—up 4.0 pts to 54.7. This was the highest level since November 2021 and in line with broad-based payroll gains seen in last Friday’s jobs report. New orders rose 2.5 pts to 57.5, while business activity edged up. Meantime, the supplier deliveries index climbed slightly, though held below the 50-mark.
On the inflation front, the prices paid index climbed for the second straight month, up 2.1 pts to 58.9, marking a four-month high and suggesting that material costs and wages picked up.
Bottom Line: There’s no two ways about it; today’s report showcased a services sector that remains sturdy amid robust demand and hiring. That will keep rates high for longer.