(IHS Markit) The US Composite Output Index dropped to an eight-month low of 55.4 in August, from 59.9 recorded in July. The output was weighed down by supply shortages and the effects of the Delta Covid-19 variant.
The Services Business Activity Index also eased to an eight-month low of 55.2 from 59.9 in July linked to shortage in labor and supply chain bottlenecks.
The Manufacturing PMI index reached a four-month low of 61.2 in August, from July’s 63.4 amid a rise in new orders.
The Manufacturing Output Index dropped to a five-month low of 56.3, from 59.7 in July, leading to the second fastest rise in backlogs in over 14 years.
Input price inflation was at a record pace since 2007 as companies shifted the high costs of inputs to their customers.
Hiring rate grew at the slowest pace since July 2020 due to the challenges of filling new positions and high job turnovers.
There is a greater optimism among businesses, with the hope that supply chain challenges will drop and demand will maintain its upward trend.
SPY is up + 0.84%, DXY is down -0.39%.
