US business activity rumples for third straight month in August- IHS Markit

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US business activity rumples for third straight month in August- IHS Markit

IHS Markit, the London-based British financial information provider, said on Monday that US business activity growth had decelerated for a third straight month in August, as a flurry of key fundamentals like of supply shortage, capacity strains, higher prices of raw materials alongside rapidly surging delta cases appeared to have taken the shine off a robust reopening of US economy.

Apart from that, IHS Markit had added in a statement that a chronic shortage of raw materials and labours coupled with a sharp uptick in inflation indicators, had begun to take a greater toll on outputs while holding back the economy’s growth momentum, as US employment rose at the slowest pace in August in more than a year.

Meanwhile, referring to an ongoing rumpus in supply chains alongside a scuffling US labour market, a Chief Business Economist at IHS Markit Chris Williamson said followed by the data, “Not only have supply chain delays hit a new survey record high, but the August survey saw increasing frustrations in relation to hiring.

Jobs growth waned to the lowest since July of last year as companies either failed to find suitable staff or existing workers switched jobs.

US business activity growth slows for third straight month

According to the London-based British financial information provider, IHS Markit’s index for flash US composite PMI (Purchasing Managers’ Index) that includes both services and manufacturing sectors, tumbled to 55.4 this month from a final reading of 59.9 logged in July, remarking the lowest level since December 2020.

Nevertheless, a figure below 50.0 indicates contraction. Aside from that, IHS Markit’s index for US Manufacturing PMI (Purchasing Managers’ Index) fell to 61.2 from a record 63.4 clocked last month, while the latest dip in US business activity growth wound more likely to wane prospects of taper-talks further ahead of a Central Bankers’ meet scheduled to take place on August 27-28, suggested analysts.