US Business Activity Hits Four-Year High in August

US business activity grew at its fastest pace in more than four years in August, according to the S&P Global flash US composite purchasing managers index. The index rose to 56, the highest reading since April 2022, fueled by stronger demand and a positive economic outlook.

Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that firms reported the fastest output growth in over four years. This expansion triggered a hiring wave, with businesses adding workers at the fastest rate since January 2025. The growth was primarily driven by the services sector, where the Purchasing Managers’ Index rose to 56.8, surpassing market forecasts of 53.9. This growth spanned several industries, including IT, transport, communication, and hospitality.

In contrast, the manufacturing gauge fell to a five-month low of 53.2, hampered by raw material shortages and supply chain delays. While input costs expanded at the slowest pace since the start of the Iran war, economists warned that conflict in the Middle East continues to threaten supply lines and energy prices.