Business activity in US service sector rises at fastest pace since March 2022

By Ovunc Kutlu

ISTANBUL (AA) - Business activity in the US service sector rose in August at the fastest pace since March 2022 amid stronger new order inflows, according to a report Thursday by financial services company S&P Global.

Input costs continued to increase sharply due to higher supplier charges and rising salaries, but the rate of selling price inflation eased to its lowest level in seven months, said the report.

Growth in total new business was supported to some extent by a second consecutive monthly rise in new export orders, it added.

The S&P Global US Services PMI Business Activity Index rose to 55.7 in August from 55.0 in July.

"An improvement in the headline services PMI to its highest for nearly two-and-a-half years provides further encouraging evidence that the US economy is enjoying robust economic growth in the third quarter, adding to signs of a ‘soft landing,’" said Chris Williamson, chief business economist at S&P Global Market Intelligence.

“The faster service sector expansion means the PMI surveys are signaling GDP growth of 2-2.5% in the third quarter," he added.

“At the same time, the August survey data signaled a further cooling of selling price inflation, notably in the service sector, which has now eased close to the average seen prior to the pandemic and a level consistent with the Fed’s 2% inflation target."