US business activity widens in August thanks to manfacturing sector: Survey

US business picked up in August, driven by a robust manufacturing sector and accelerated hiring, according to a survey conducted by S&P Global.

The survey, released Thursday, showed that the S&P flash US Composite PMI Output Index climbed to 55.4 points in August, from 55.1 points in July, reaching an eight-month peak.

The improvement came largely from the manufacturing sector, where the flash PMI soared to 53.3 points this month, from 49.8 points in July, surpassing the 50-point mark separating growth from contraction. This is its highest reading in 39 months.

Conversely, the services sector eased back to 55.4 points, against 55.7 points last month, reflecting a slowdown in sector activity in August.

S&P Global noted a pick-up in the pace of hiring in the US economy, with job creation recording a three-year high.

According to the survey, business confidence and outlook improved, albeit still below the levels observed at year-start. This is given the growing uncertainty surrounding government policies, particularly regarding the tariff agenda.