The S&P Global US Composite PMI edged up to 55.4 in August 2025 from 55.1 in July, marking the 31st consecutive month of growth, flash estimates showed. It also signaled the strongest pace of expansion so far this year. The services economy maintained solid expansion, even as business activity dipped slightly from July’s year-to-date high (PMI at 55.4 vs 55.7). Manufacturing activity rebounded in August, with the PMI climbing to 53.3 from 49.8 in July, its strongest level since May 2022. Hiring accelerated, with job creation reaching one of the highest rates recorded over the past three years. Companies also reported the largest accumulation of unfinished work since May 2022. Input costs rose sharply, largely due to tariffs, fueling the steepest increase in average selling prices seen in the past three years. Business sentiment improved, but remained well below levels seen at the start of the year, as firms continued to express concerns over government policies, particularly tariffs.