With 'hard' economic data still somewhat muted, expectations were for a modest retracement in US PMIs from recently optimistic levels in preliminary September data.
Instead, the 'soft' survey data soared:
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Flash US Services PMI Business Activity Index: 58.7 vs 55.8 exp (August: 56.5). 59-month high.
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Flash US Manufacturing PMI: 57.0 vs 53.7 exp (August: 53.9). 52-month high.
The headline flash S&P Global US PMI Composite Output Index rose from 56.0 in August to 58.4 in September, registering the fastest expansion since July 2021 and an acceleration of growth for a fourth successive month.
Growth was driven by the service sector, which reported the steepest rise in output for over five years, but a welcome development in September was an accompanying acceleration of manufacturing output growth to the fastest since April 2022. New order inflows also gathered pace in both sectors, with growth reaching the highest since March 2022 in the service sector and the highest since April 2022 in manufacturing. In both cases, demand was buoyed principally by the domestic market, as goods export volumes continued to fall and services exports rose only modestly.
“US business continues to boom, with output growing at the fastest rate for over five years in September," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
Historical comparisons suggest that the latest survey data point to annualized growth of around 5% with a 4% gain now signa
