August final data from Markit
- Prelim was 55.2
- Final July was 59.9
- Composite final PMI 55.4 vs 55.4 prelim
- Composite input prices 74.9 vs 75.9 flash
The ISM services data is due at the top of the hour.
Comments from Markit IHS' economist:
Growth slowed sharply in the US service sector in August, joining the manufacturing sector in reporting a marked cooling in demand and encountering growing problems finding staff and supplies. Jobs growth almost stalled among the surveyed companies in August and supplier lead times are lengthening at a near record rate.
"While the resulting overall pace of economic growth signaled is the weakest seen so far this year, backlogs of uncompleted work are rising at a rate unprecedented in at least 12 years, underscoring how supply and labor shortages are putting the brakes on the recovery. The inevitable upshot is higher prices, with firms' input costs and selling prices rising at increased rates again in August, continuing the steepest period of price growth yet recorded by the survey by a wide margin.
"Encouragement comes from a rise in business expectations about the year ahead, though optimism in the service sector in particular remains off the high seen in the second quarter, to a large extent reflecting concerns over the spread of the Delta variant."
