PT Solid Gold Berjangka | US Business Activity Edges Lower; Pricing Power Eebbs Further
ECONOMY SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | U.S. business activity fell to a four-month low in August as companies continue to struggle to pass on higher prices to consumers.
S&P Global said Thursday that its preliminary U.S. composite PMI output index for manufacturing and services fell to 54.1. This follows a final reading of 54.3 in July.
A reading above 50 indicates expansion in the private sector. The services sector improved slightly, while the manufacturing sector eased.
Average prices for goods and services rose at their slowest pace since January and S&P Global now sees them at a level consistent with the Federal Reserve’s 2% inflation target. This reflects reports from firms that customers are rebounding against higher prices through bargaining, buying less, and switching to lower-priced alternatives.
Inflation slowed to below 3% on an annualized basis for the first time in nearly three and a half years in July, the Labor Department reported last week.
The overall PMI, which was mostly unchanged, suggested that economic activity remained strong in the third quarter. Gross domestic product rose 2.8% on an annualized basis in the second quarter, recovering from a 1.4% pace in the January-March quarter.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said, “August’s solid growth suggests GDP growth in the third quarter will exceed the 2% annualized rate.” Similarly, the decline in sales price inflation to near its pre-pandemic average is indicative of a ‘normalization’ of inflation, which should support a rate cut.”
New orders by private firms in the S&P Global Survey rose to 52.3 from 52.2 in July. The index of input prices by firms was unchanged at 58.0, while the index of invoice prices fell to 52.8 from 53.1 in July.
Private sector employment declined, with the services sector falling, while the manufacturing sector employed the fewest number of workers since January.
The preliminary manufacturing PMI fell to an eight-month low, dropping to 48.0 this month from 49.6 in July. A Reuters poll had forecast the index for the sector, which accounts for 10.3% of the economy, to remain unchanged.
The preliminary services PMI rose to 55.2 from 55.0 in July, reversing economists’ expectations for a decline to 54.0. S&P Global said that uncertainty about the November presidential election and concerns about future demand, particularly in the manufacturing sector, continue to adversely affect sentiment about the future. The company said.
Source Reuters