German business activity, particularly in the services sector, experienced its sharpest decline since May 2020, leading to concerns about the country's outlook for the remainder of the year and potential stagflation, as both manufacturing and services sectors are contracting.
U.S. business activity in August approached stagnation, with growth at its weakest since February as demand for new business in the service sector contracted.
The US economy shows signs of slowing towards the end of summer, with the services-sector index falling to a six-month low and the manufacturing-sector index remaining in negative territory, suggesting a near-stall in business activity and raising doubts about the strength of economic growth in Q3.
The flash surveys from S&P Global show a slowdown in US manufacturing and services sectors, raising concerns about economic growth in the third quarter and indicating a possible contraction in September due to weak demand and rising input costs.
The contraction in euro area business activity has intensified, particularly in Germany, leading to expectations that the European Central Bank will pause its interest-rate hike campaign; US mortgage applications for home purchases have hit a three-decade low due to rising borrowing costs; South Korea's exports continue to decline, indicating lackluster global trade; Turkey's interest-rate increase has triggered a rally in the country's assets; shrinking water levels at the Panama Canal due to climate change may cause delays in restocking inventories before Christmas.
U.S. manufacturing activity rose in August, but the sector remains in contraction territory according to the Institute for Supply Management, suggesting that a sustained recovery is unlikely amid a weakening global economy.
The decline in euro zone business activity accelerated faster than expected last month, with the services industry falling into contraction, raising concerns of a possible recession.
Business activity in Britain's services sector declined in August, the first drop since January, due to higher interest rates dampening consumer and corporate demand, although the decrease was less severe than initially estimated.
China's services sector experienced a slowdown in business activity, resulting in the lowest level in eight months, as weaker foreign demand and sluggish overseas orders impacted consumption, despite economic stimulus efforts.
U.S. manufacturers reported a decline in business activity for the 10th consecutive month in August, but the declines are becoming less widespread, suggesting that the trough in the cycle may be approaching.
The US services sector expanded for the eighth consecutive month in August, with all four subindexes of the Services PMI showing growth, according to the Institute for Supply Management.
There are indications that a severe economic contraction may be approaching in the US, with a significant decline in home sales and rising interest rates, similar to the 2008 financial crisis, according to Bloomberg analyst Mike McGlone.
U.S. business activity remains sluggish in September, with the services sector hovering at its slowest pace since February and new order activity hitting its lowest level of the year, according to a survey by S&P Global, which also indicated that job growth and consumer spending have held steady despite concerns over interest rate hikes and inflation.
The U.S. manufacturing sector contracted in September for the 11th consecutive month, but at a slower rate, with new orders remaining in contraction territory and prices decreasing, according to the latest Manufacturing ISM® Report On Business®.
The ISM barometer of U.S. business conditions at service-oriented companies fell slightly in September, suggesting some softening in the economy; however, the overall sentiment around the service sector remains positive.