American economic activity grew at a decreasing rate in August

By: Trademagazin Date: 2023. 08. 23. 11:54

US economic activity grew at a decreasing rate in August based on the preliminary values of the Composite Purchasing Managers’ Index (BMI) published on Wednesday by the economic research institute S&P Global Market Intelligence.

The composite BMI formed by combining manufacturing and service industry data fell to 50.4 points, a 6-month low, in August from 52.0 points in July, analysts had expected stagnation at 52.0 points.

A BMI value below 50 points indicates a decline in the performance of the examined economic activity, and a value above 50 points indicates an increase.

In August, the BMI of the manufacturing industry fell to 47.0 points, a 2-month low, from 49.0 points in July, falling short of market expectations of 49.3 points.

The service industry BMI fell to 51.0 points, a 6-month low, in August from 52.3 points in July. The average of the experts’ expectations was a less deteriorating figure, 52.2 points.

Commenting on the result, Chris Williamson, chief economist at S&P Global Market Intelligence, noted that the August data showed that slower growth in the services sector was less and less able to offset a decline in manufacturing due to weak demand.