Google News US flash composite PMI rises in Sept., but botches to break off contraction territory
by SOURAV D | VIEW 342
On Friday, S&P Global data had unveiled that US flash composite PMI rises in Septemeber, but still anchors in a contraction territory, as US business activities remain in a contraction territory for a third straight month in a row in September, stoking frets of another quarter of subdued growth. Nonetheless, in what could be contemplated as a shimmering ray of hope for the US economy, S&P Global data also had underscored that the pace of decline in business activities has been slowing down as a lingering strain in global supply chain seems to be easing with inflation pressure easing for some companies. However, several analysts were quoted saying that with PPI (Producers Prices Index), a gauge that signposts producers’ expenses to engender consumer goods, alongside CPI (Consumers Prices Index) rising unexpectedly in last month, the last month of third quarter would likely to witness a further build-up in price pressures.
US business activity contracts for third straight month
According to data from S&P Global released late on Friday, the Manhattan-based financial analytics provider’s index for flash US Composite PMI Output Index that includes both factory and service sectors activities, rose to 49.3 per cent compared to a reading of 44.3 a month earlier.
Nonetheless, the reading still remains in a recession territory, as a reading below 50.0 indicates contraction. In tandem, breaking down the figures, US services sector PMI (Purchasing Managers’ Index), rose to 49.2 compared to a reading of 43.2 logged in August, however, manufacturing PMI remained threadbare.
On a separate viewpoint, if the pandemic induced slump of Spring 2020 is unaccounted, US business output over the third quarter has been the worst since the Great Depression of 2007-2009.