{
  "id": 5358441,
  "title": "Strong demand boosts US services sector activity",
  "url": "https://urgent.news/2026/09/03/strong-demand-boosts-us-services-sector-activity",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-03T15:05:03.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/international/world-news/strong-demand-boosts-us-services-sector-activity-in-august/articleshow/133739653.cms"
  },
  "original_language": "en",
  "account": "U.S. services sector activity surged in August as robust demand drove new orders to a three-and-a-half-year high and pushed input prices up, potentially keeping inflation elevated and prompting the Federal Reserve to hike interest rates before year-end. The Institute for Supply Management's nonmanufacturing Purchasing Managers Index surged to 55.4 in August, up from 54.1 in July, indicating growth in the services sector. The PMI, which exceeds 50 to signal expansion, aligns with strong economic growth in the third quarter. New orders received by services businesses jumped to 60.9, the highest since February 2023, reflecting domestic demand fueled by an artificial intelligence spending boom. However, supplier deliveries slowed to 51.3, up from 52.8 in July, as supply chains remained stretched. Input prices rose to 72.6 from 70.3 in July, suggesting inflation may remain above the U.S. central bank's 2% target, potentially keeping interest rates elevated. Fed Chairman Kevin Warsh indicated the central bank will need to act if policymakers don't ensure inflation falls to the 2% target. Financial markets anticipate a roughly 64% chance of a 25 basis point rate hike at the Fed's September meeting. Despite strong orders, services sector employment remained sluggish, with businesses hesitant to add workers due to policy uncertainty. The employment sub-index remained steady at 47.8, signaling a potential downside risk to August's nonfarm payrolls. While the employment report is expected to show job gains, economists are preparing for another month of losses due to the recent expiration of Temporary Protected Status for Haitian workers.",
  "summary": null,
  "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."
}