The pace of expansion in US manufacturing activity is the fastest since 2022, boosted by demand.

Strong demand is driving the fastest expansion of the US manufacturing sector in over three years, which is exacerbating ongoing inflationary pressures. The initial August Manufacturing Purchasing Managers' Index (PMI) from S&P Global rose by 3.5 points to 53.3, the highest since May 2022. A reading above 50 indicates expansion. The rebound in the manufacturing index also pushed the composite PMI covering the services sector to its highest level so far this year. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, stated, "Companies in both manufacturing and services are reporting stronger demand conditions, but they are still facing challenges in meeting sales growth."