U.S. August ISM Services - Mostly positive though employment subdued
August’s ISM services index of 55.4 is the strongest since February and up from 54.1 in July. The strength is consistent with a healthy S and P services PMI, even if the latter was revised down to 56.5 from 56.8.
Details of the ISM services data are mostly positive, with new orders at 60.9 from 57.2 the highest since February 2023 and business activity at 61.7 from 59.1 the highest since November 2022.
Employment however remains weak at 47.8 from 47.4. The final component of the composite, delivery times, at 51.3 from 52.8, did not see a bounce, suggesting supply pressures are less of an issue in services than manufacturing.
Still, the ISM services prices paid index accelerated, to 72.6 from 70.3, not a dramatic rise on the month but the level is the highest since August 2022.
