Services PMI up from July, but High Rates Place a Brake on Growth

In August 2024, the U.S. services sector continued its expansion for the second consecutive month, with the Services PMI at 51.5%, slightly up from July’s 51.4%. The Business Activity Index was 53.3%, indicating ongoing growth despite a slight decline from July. New Orders increased to 53%, while the Employment Index, though lower than July, remained in expansion at 50.2%. Supplier delivery times improved, with the Supplier Deliveries Index at 49.6%. The Prices Index rose slightly to 57.3%, and inventories returned to expansion at 52.9%. Despite these positive signs, panelists reported slow-to-moderate growth, with concerns over high costs and interest rates affecting business performance.