US Private Sector Activity Growth Confirmed at 52-Month High

The S&P Global US Composite PMI came in at 56 in August 2026, unrevised from the preliminary estimate and above July's reading of 54.5. The data showed that private-sector growth accelerated for the third month in a row, reaching its highest level in 52 months. Services activity strengthened significantly, while manufacturing continued to expand, albeit at a slower pace. Six of the seven US sectors expanded in August, led by Financials, Consumer Services and Technology. New orders increased at their fastest rate in 20 months. Employment growth also accelerated, reaching a 19-month high. Meanwhile, price pressures eased. Input-cost inflation fell to its lowest level since April 2025, while selling-price inflation slowed to a nine-month low. Business confidence, however, remained broadly unchanged from July.

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.