US Services Growth Hits Six-Month High in August as Price Gauge Reaches Four-Year Peak

U.S. services activity expanded in August at the fastest pace in six months, supported by strong demand and a rebound in business activity. According to Sina Finance, the Institute for Supply Management said its services index rose 1.3 points to 55.4, the highest since February and above economists' median forecast. New orders accelerated to their fastest pace since early 2023, while the business activity gauge climbed to its strongest level since 2022. Backlogs of orders expanded for a seventh straight month. The ISM price index for services materials and services rose to 72.6 in August, the highest since mid-2022. The report also said the employment index showed contraction in five of the past six months, while the supplier deliveries gauge remained in expansion territory but fell to its lowest level in nearly a year.