{
  "id": 2355837,
  "title": "S&P Global US PMIs expected to ease slightly in August, still showing solid growth",
  "url": "https://urgent.news/2026/08/21/s-p-global-us-pmis-expected-to-ease-slightly-in-august-still-showing",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-08-21T09:45:00.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/sp-global-us-pmis-expected-to-ease-slightly-in-august-still-showing-solid-growth-202608210945"
  },
  "original_language": "en",
  "account": "S&P Global is projected to release slightly reduced US Purchasing Managers Indices (PMIs) for August, while still signaling robust economic expansion. The indices encompass three key indicators: Manufacturing PMI, Services PMI, and Composite PMI – a composite measure combining the former two. These indices reveal growth when exceeding 50 and contraction when below. July's figures illustrated a notable surge in business activity, with the Composite PMI reaching 54.5 from June's 51.9, surpassing market forecasts and marking its strongest performance since October 2025. Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, cautioned that manufacturing activity decelerated, hampered by supplier delays in the Middle East conflict. For August, market expectations anticipate a slight downturn in economic momentum, with Manufacturing PMI falling to 53.8 from July's 53.9, and Services PMI declining to 54.0 from the prior month's 54.6. Under normal circumstances, August's data should still exhibit robust growth in manufacturing and services sectors, particularly when juxtaposed with many developed economies. Generally, PMI data from July and August tends to align with sustained GDP growth, reinforcing the notion of US economic supremacy amidst a weakened global economy. The July report cautioned that some of the recent improvements might be temporary, as the boost in hospitality spending was primarily attributed to special, one-time events like the World Cup, while rising prices could suppress demand and hinder growth. Consequently, a steeper-than-anticipated slowdown could intensify investor apprehension regarding the economic outlook, triggered by the underwhelming Nonfarm Payrolls report earlier in the month. This, in turn, would exert downside pressure on an already weakening US Dollar, which has been battered this week following the US Treasury's initiative to augment long-term Government debt purchases to address the bond crisis. Conversely, a favorable surprise could bolster confidence in the US economy, albeit the impact on the US Dollar is expected to remain minimal, absent a substantial deviation from market expectations. The S&P Global PMI report will be released at 13:45 GMT and is anticipated to reveal a moderate deceleration in US business activity. Earlier today, the Eurozone's HCOB Flash PMIs outperformed forecasts, as manufacturing activity expanded more rapidly than expected and Services PMI continued its gradual growth trajectory, albeit at levels indicative of sluggish growth. The data elicited a modestly positive reaction in the EUR/USD. FX analyst Guillermo Alcalá of FXStreet notes a strong bullish momentum in the EUR/USD, surpassing the top of the past two months' trading range and the key 200-day Simple Moving Average (SMA) at 1.1630, a commonly used indicator among FX traders. However, the Relative Strength Index (RSI) indicates that most timeframes are heavily overbought, potentially serving as a cautionary signal for buyers. A breakout above the late May highs at 1.1685 would clear the path to the 1.1800 resistance area, which bulls have repeatedly encountered since early May. Failure to surpass 1.1685 would bring the aforementioned 200-day SMA back into play. The US Dollar (USD) is the official currency of the United States, and the 'de facto' currency in numerous other countries where it is widely used alongside local currencies. It is the most actively traded currency globally, accounting for over 88% of all foreign exchange turnover, averaging $6.6 trillion in daily transactions, according to 2022 data. Since the conclusion of World War II, the USD has supplanted the British Pound as the world's reserve currency. For the majority of its history, the US Dollar was backed by Gold; however, the Gold Standard was abandoned in 1971 through the Bretton Woods Agreement. The most significant factor influencing the US Dollar's value is monetary policy, which is guided by the Federal Reserve (Fed). The Fed's dual mandates are to maintain price stability (control inflation) and promote full employment. Its primary instrument to achieve these objectives is through interest rate adjustments. When prices rise too rapidly and inflation exceeds the Fed's 2% target, the Fed raises rates, which strengthens the USD. When inflation falls below 2% or the Unemployment Rate is excessively high, the Fed may lower rates, which weakens the Greenback. In extreme circumstances, the Federal Reserve can also print additional Dollars and execute quantitative easing (QE). QE involves the Fed injecting more Dollars and purchasing US government bonds primarily from financial institutions. QE typically results in a weaker US Dollar. Quantitative tightening (QT) is the opposite process, characterized by the Federal Reserve ceasing bond purchases and not reinvesting the principal from maturing bonds into new purchases. It generally benefits the US Dollar. The Federal Reserve (Fed) governs monetary policy in the US, guided by the mandates to achieve price stability and full employment.",
  "summary": "S&P Global will release the preliminary figures of August’s United States Purchasing Managers' Indices (PMIs), a report collecting top private sector executives' opinions about business conditions, to provide an early indication of momentum in the world’s largest economy.",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}