US economic activity little changed in August, PMIs show

The pace of economic activity in the U.S. was little changed last month, the results of two surveys showed.

S&P Global's Composite Output Index for the U.S. ticked lower from a reading of 50.2 for July to 50.1 in August.

Services was responsible for the dip in the composite index, as an index for business activity in the sector slipped from 50.5 to 50.2.

The Purchasing Managers' Index for manufacturing alone on the other hand rose from 48.5 to 49.7.

For all PMIs the 50 point level marked the threshold between an expansion from a contraction.

"PMI data for September added to concerns regarding the trajectory of demand conditions in the US economy following interest rate hikes and elevated inflation;" said Sian Jones, principal economist at S&P Global Market Intelligence.

"Inflationary pressures remained marked, as costs rose at a faster pace again. Higher fuel costs following recent increases in oil prices, alongside greater wage bills, pushed operating expenses up. Weak demand nonetheless placed a barrier to firms’ ability to pass on greater costs to clients, with prices charged inflation unchanged on the month."