U.S. private-sector business activity increased in August, according to S&P Global’s flash PMI survey, with the Composite Output Index rising to 55.4 from 55.1, the highest in eight months.
The gain reflected a return to growth in manufacturing, where the headline Manufacturing PMI rose to 53.3 from 49.8 and the Manufacturing Output Index increased to 55.2 from 51.3. Services also remained in expansion, with the Services Business Activity Index at 55.4, down slightly from 55.7.
S&P Global said factory production grew at the fastest pace since May 2022, while new manufacturing orders rose by the most since February 2024. The survey also showed a further increase in unfinished work, with backlogs rising at the fastest pace since May 2022, and employment growth strengthening, including the strongest factory hiring since March 2022.
Price pressures increased as firms reported higher input costs and broader pass-through into selling prices, with average selling-price inflation reaching a three-year high. The survey commentary said tariffs were a factor in higher costs. The flash estimates were compiled from responses collected in mid-August and were based on about 80% to 90% of the usual survey sample of around 650 manufacturers and 500 service providers.