Services Sector Survey Surge Sparks US Growth Rebound Hopes In August

The preliminary August S&P Global survey showed the Flash US Services PMI Business Activity Index at 56.8, up from 54.6 in July and its highest level in 20 months. The reading followed a run of disappointing macroeconomic data and a hectic week of interventions, making the services acceleration a notable upside surprise to expectations for slower growth.

Manufacturing moved in the opposite direction, slipping to 53.2 from 53.9 and reaching a five-month low. The combined signal is therefore uneven: service-sector respondents reported much stronger activity, while factory momentum weakened.

The next focus is whether the services strength carries into final PMI readings and subsequent hard data, and whether manufacturing weakness persists. Markets will also parse the survey for evidence that the rebound is broadening or remaining concentrated in services.