S&P Global flash U.S. composite index rises to 56.0 in August

American business activity is expanding at its fastest pace in more than four years. S. 5 in July, the strongest reading since April 2022. Readings above 50 indicate expansion.

5% pace recorded in the second quarter. S. business is booming, with firms reporting the fastest output growth for over four years so far in the third quarter as the expansion picked up further momentum in August," said Chris Williamson, chief business economist at S&P Global Market Intelligence. 6, a 20-month high and the fastest expansion since December 2024.

"Jobs were added at the fastest rate since the start of last year as increasingly confident companies took on more staff to meet higher demand," S&P Global said. Business output expectations improved for a third straight month to a nine-month high. Input cost inflation ran at its slowest since February. Prices charged rose at the weakest pace since November, a ten-month low in services and a six-month low in manufacturing.

Fewer firms reported passing through higher fuel and energy costs. Manufacturing went the other way. 9, the weakest since March, though still among the higher readings of the past four years. S&P Global attributed the factory slowdown to two things.

Safety-stock building, which had powered goods production in the early months of the war, is now fading. And supply chain delays lengthened again in August to one of the greatest extents in four years, blamed on shipping disruption, tariffs and thin inventories at suppliers. Input buying by manufacturers rose only slightly, the smallest increase this year. Purchases of inputs fell outright for the first time since February.

That combination — accelerating growth with cooling selling prices — is the friendlier version of the data for equity investors, and it lands with the SPDR S&P 500 ETF Trust (NYSE: SPY ) near record levels. The Invesco QQQ Trust (NASDAQ: QQQ ) has gained 25% over the past year. com