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US August Service Sector Final Value Slightly Below Initial Value, Future Economic Growth Still Faces Downside Risks
Summary: According to Jin10, Chris Williamson, Chief Business Economist at IHS Markit, stated that despite the US service sector PMI final value being below the initial value and lower than July levels, the August service sector data is still the second strongest so far this year. With strong performance in manufacturing PMI, these survey results indicate ...
According to Jin10, Chris Williamson, Chief Business Economist at IHS Markit, stated that despite the US service sector PMI final value being below the initial value and lower than July levels, the August service sector data is still the second strongest so far this year. With strong performance in manufacturing PMI, these survey results indicate that the US economy is expected to achieve an annualized growth rate of 2.4% in the third quarter.
At the same time, orders reflect an increase in summer customer demand, leading to more hiring by service providers and a recovery in hiring in the manufacturing sector. However, the positive news on growth and hiring is overshadowed by concerns about future development prospects and inflation. Survey data shows that there are some downside risks to economic growth in the coming months, while there are upside risks to inflation as import tariffs have transmitted to prices of goods and services.
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Link: US August Service Sector Final Value Slightly Below Initial Value, Future Economic Growth Still Faces Downside Risks [Copy]
