US business activity contracts at sharpest rate in 27 months

By Ovunc Kutlu

ANKARA (AA) - Business activity in the US contracted in August at the sharpest rate since May 2020, according to a report released by US-based financial services company S&P Global on Tuesday.

Services purchasing managers' index (PMI) of Business Activity, which covers transport, communication, financial intermediaries, computing, hotels and restaurants, plummeted 3.6 points to 43.7 in August.

While the market expectation for the index was to come in at 44.3, it stood at 47.3 in July.

"Service providers recorded a solid decline in new business in August, with new orders falling for the second time in three months. The rate of contraction was the sharpest for over two years and among the fastest on record," the report said.

"The impact of high inflation and increased interest rates on client demand reportedly weighed on total sales," it added.