US Manufacturing and Services are Expanding Faster than Expected

#business #activity #growth #manufacturers, #services #PMI

Last Friday we got the IHS Markit Flash US Composite PMI under the title “Strong expansion in US private sector output in August,” which came in better than expected.

Key findings are as follows:

▪ Flash US Composite Output Index at 54.7 (50.3 in July). 18-month high.

▪ Flash US Services Business Activity Index at 54.8 (50.0 in July). 17-month high.

▪ Flash US Manufacturing PMI at 53.6 (50.9 in July). 19-month high.

▪ Flash US Manufacturing Output Index at 53.9 (51.7 in July). 19-month high.

After the United States industrial production had shown 2 months with positive monthly growth (+5.4 percent in June), the IHS Markit Flash composite PMI for August signaled, based on data collected from 10-20 August both manufacturers and service providers registered expansions.

We have have to wait til 3 September to know the final IHS Markit PMI data for the US.

Also fueling the economic recovery is that the average credit card debt is  currently at $6,028/person and has the elasticity for potential further expansion. In addition, the index of consumer confidence, a Key economic indicator,  rose to 98.1 in June from a revised 85.9 in May according to  the Conference Board,” notes economist Bruce WD Barren, Chairman of The EMCO/ Hanover Group.

Stay tuned…

Have a healthy day, Keep the Faith!