Composite PMI Drops To 54.1, Beating Analyst Expectations

On August 22, 2024, S&P Global released flash PMI reports for August. Manufacturing PMI declined from 49.6 in July to 48.0 in August, compared to analyst consensus of 49.6.

The Manufacturing PMI report showed that increased rates of decline for new orders and inventories were accompanied by the first fall in factory production for seven months.

Services PMI increased from 55.0 in July to 55.2 in August, compared to analyst consensus of 54.0. Composite PMI decreased from 54.3 to 54.1, while analysts expected that it would drop to 53.5.

S&P Global commented: “Growth disparities widened further, however, with the service sector expanding at a solid and increased rate while manufacturing output declined at the fastest rate for 14 months.”

U.S. Dollar Index tested session highs after the release of the PMI reports. Traders focused on the better-than-expected Composite PMI data, which indicated that U.S. economy remained in decent shape.

Gold  pulled back below the $2485 level as traders focused on stronger dollar and rising Treasury yields.

SP500 settled near 5635 as traders remained bullish. Stock traders bet that Fed will start cutting rates aggressively, which will provide additional support to major indices.

For a look at all of today’s economic events, check out our economic calendar.