US: S&P Global Services PMI drops to 50.5 in August

The seasonally adjusted final S&P Global US Services PMI Business Activity Index posted 50.5 in August, down sharply from 52.3 in July. The number was revised lower from the preliminary 51. The Composite Index was also revised lower from 50.4 to 50.2, the lowest since February. 

"The survey data send a hint of rising stagflation risks, as stubborn price pressures are accompanied by a near-stalling of business activity”, said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence. 

Market reaction

The US Dollar weakened moderately after the report. Market participants are now eagerly awaiting more data from the sector, with the ISM Services PMI.