US ISM Non-Manufacturing Index Rises to 55.4 in August; New Orders Hit 3-1/2-Year High
Macro Impact 4
The Institute for Supply Management (ISM) reported that its non-manufacturing composite index rose to 55.4 in August from 54.1 in July, with new orders reaching a 3-1/2-year high amid robust demand. Economists polled by Reuters had forecast a reading of 54.2. The new orders index surged to 60.9, the highest since February 2023, partly boosted by the AI-related investment boom. The prices paid index also rose to 72.6, suggesting inflation may remain above the Federal Reserve's 2% target. Meanwhile, the employment index was weak at 47.8, posing a downside risk to August nonfarm payrolls.
