US August Composite PMI Beats Expectations to Over Four-Year High, Strong Services Expansion Offsets Manufacturing Weakness

The US Composite PMI rose to 56.0 in August, the highest since April 2022, with robust services expansion driving third-quarter GDP annualized growth toward 3.0%, as economic momentum shifts from manufacturing to services. The labor market has shown clear signs of recovery, business confidence has improved, and price pressures have eased somewhat. However, manufacturing has cooled due to supply chain delays and tariffs, while energy prices remain a potential inflation risk.