The US composite PMI reached 56.0 in August, its highest level in 20 months, according to S&P Global flash data released on August 21. Manufacturing output dipped slightly to 53.2 from July’s 53.9, but remains in expansion territory. The services sector surged to 56.8, pulling the composite index to a 20-month high. Services account for roughly two-thirds of US economic output, making its acceleration especially meaningful for the broader economy. Strong economic data gives the Federal Reserve less urgency to cut interest rates, as the economy appears to be expanding comfortably without additional support.
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