US Business Growth Hits 52-Month High in August

The US flash S&P Global Composite PMI rose to 56 in August 2026 from 54.5 in July, marking the strongest expansion since April 2022. The improvement was driven primarily by a revival in the services sector, where activity reached its fastest pace since December 2024 and more than offset a slowdown in manufacturing growth. Goods production recorded its weakest increase in 13 months, partly reflecting reduced inventory building and supply disruptions. Delivery times also lengthened significantly, contributing to a further accumulation of outstanding orders across both sectors. Stronger demand encouraged companies to increase hiring, with employment growing at its fastest pace since early 2025. Business confidence also improved, with expectations for future activity reaching a nine-month high. Meanwhile, price pressures showed some moderation, particularly in selling prices, although input costs remained elevated, largely due to higher energy prices.

The S&P Global US Composite PMI rose to 54.5 in July 2026 from 51.9 in June, exceeding both the preliminary estimate of 53.6 and marking the strongest expansion in private sector activity since October 2025. The improvement was driven by faster growth in the services sector, while manufacturing output continued to expand at a solid pace. New business increased at the fastest rate in 19 months, business confidence climbed to its highest level since last November, and private sector employment returned to growth for the first time since April. On the price front, input cost inflation accelerated to its highest level since November 2022, pushing output price inflation to a one-year high.

The S&P Global US Composite PMI rose to 53.6 in July 2026 from 51.9 in June, its highest level since November. Growth was driven by the services sector, where business activity accelerated to an 8-month high. Manufacturing output continued to expand but at a much slower pace, with factories reporting the weakest increases in production since March. Hiring increased for the first time in 3 months, while business confidence climbed to its highest level in 8 months. However, supply chain pressures intensified, with supplier delivery times deteriorating to the greatest extent in nearly four years amid ongoing conflict in the Middle East. Inflationary pressures also strengthened, as input cost inflation accelerated to a 14-month high and selling price inflation approached a 4-year peak. Looking ahead, the current momentum may not be sustained, as July hospitality spending received a temporary lift from the FIFA World Cup and celebrations marking the 250th anniversary of the US.