- Final services 43.7 vs 44.1 prelim and 47.3 prior
- Composite 44.6 vs 45.0 prelim and 47.7 prior
There's a big divergence between this and the ISM services data, which is expected at 55.1 from 56.7 prior. To me, that highlights the risk of a big downside miss. If so, we could see some of today's dollar strength unwound.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said:
"August saw the US economy slide into a steepening downturn, underscoring the rising risk of a deepening recession as households and business grapple with the rising cost of living and tightening financial conditions.
"Businesses are reporting a deterioration in output and order books of a degree exceeded since the global financial crisis only by that seen during the initial pandemic lockdowns.
"While orders are being lost across the board as a result of rising prices and the cost-of-living squeeze, the steepest downturn is being recorded in the financial services sector, reflecting the additional impact of higher interest rates and worsening financial conditions.
"Jobs growth has meanwhile cooled as companies grow increasingly reluctant to expand in the face of falling demand and an uncertain outlook, which will serve to further dampen growth in the coming months.
"One positive form the survey was a substantial fall in the rate of input cost inflation , which should help to moderate consumer price growth in the months ahead, albeit with the rate of increase remaining stubbornly elevated."