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Services PMI® at 51.5% in August 2024: Services ISM® Report On Business®

Key Highlights

• The Services PMI® registered 51.5% in August 2024, indicating growth in the services sector for the 29th consecutive month.
• The Business Activity Index increased by 1.3 percentage points to 53.0%, signaling an expansion in business activity.
• The New Orders Index declined by 0.8 percentage points to 50.9%, indicating a slight decrease in new orders.

In-Depth Analysis

Business Activity

The Business Activity Index rose to 53.0% in August 2024, suggesting an expansion in business activity within the services sector. This increase indicates a positive outlook for the industry, with businesses reporting higher levels of activity compared to the previous month.

New Orders

The New Orders Index decreased slightly to 50.9% in August 2024. While this represents a marginal decline, it still indicates a positive trend in new orders. The services sector continues to experience demand, although the pace of growth may be moderating.

Employment

The Employment Index remained steady at 52.9% in August 2024. This suggests that the services sector continues to add jobs, albeit at a slightly slower pace than in previous months. The industry continues to face challenges in hiring and retaining qualified workers.

Prices

The Prices Index increased to 72.0% in August 2024, indicating ongoing inflationary pressures within the services sector. Businesses are reporting higher input costs, which are being passed on to customers in the form of higher prices.

Conclusion

The Services PMI® report for August 2024 presents a mixed picture of the services sector. While business activity and employment continue to expand, new orders and prices are showing signs of moderation. Overall, the industry remains resilient and continues to contribute to economic growth.

For more information on the Services PMI® and other economic indicators, please visit the ISM website at www.ismworld.org.