- Solve real problems with our hands-on interface
- Progress from basic puts and calls to advanced strategies
Interactive Options Course
Posted August 21, 2026 at 10:15 am
S&P Global’s flash services PMI rose to 56.8 in August, helping overall business activity accelerate even as manufacturing cooled.
US services activity just jumped to its strongest pace in nearly two years, helping overall business growth accelerate in August even as manufacturing cooled.
S&P Global, a financial data firm, said its flash services purchasing managers’ index (PMI) rose to 56.8 in August from 54.6 in July, above economists’ 54.0 forecast in a Reuters poll. (A reading above 50 suggests the sector is expanding.) Manufacturing eased to 53.2 from 53.9, but the stronger services side pushed the firm’s Composite Output Index up to 56.0. S&P Global’s Chris Williamson said the survey points to faster third-quarter growth and stronger services hiring, while factories were held back by cooler inventory building and supply disruptions that have lifted energy prices. Price pressures cooled a bit, but S&P Global said companies’ costs and the prices they charge are still elevated, and could pick up again if energy gets more expensive.
For markets: S&P Global’s 56.8 services PMI keeps the rate-cut debate alive.
Because services make up most of the US economy, a hotter-than-expected reading can matter more for interest-rate expectations than a softer factory update. Services inflation also tends to be “sticky”, meaning it’s often tied to wages and steady demand rather than one-off goods price swings. So when the same survey says input costs and selling prices remain elevated, investors can push back the timing of expected Federal Reserve rate cuts. That shift usually hits the most rate-sensitive corners first: 2-year Treasury yields and the valuations of long-duration stocks, which depend heavily on where policy rates settle.
—
Originally Posted August 21, 2026 – US Services Activity Hit A Nearly Two-Year High
Information posted on IBKR Campus that is provided by third-parties does NOT constitute a recommendation that you should contract for the services of that third party. Third-party participants who contribute to IBKR Campus are independent of Interactive Brokers and Interactive Brokers does not make any representations or warranties concerning the services offered, their past or future performance, or the accuracy of the information provided by the third party. Past performance is no guarantee of future results.
This material is from Finimize and is being posted with its permission. The views expressed in this material are solely those of the author and/or Finimize and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Related Articles
Join The Conversation
For specific platform feedback and suggestions, please submit it directly to our team using these instructions.
If you have an account-specific question or concern, please reach out to Client Services.
We encourage you to look through our FAQs before posting. Your question may already be covered!