US Business Activity Sees Strongest Growth Since April 2022
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US Business Activity Sees Strongest Growth Since April 2022
- US business activity expanded in August 2026 at its fastest pace since April 2022, with the S&P Global flash US composite purchasing managers index climbing to 56.0.
- Chris Williamson, chief business economist at S&P Global Market Intelligence, noted that firms are reporting the fastest output growth in over four years, with hiring also seeing a revival in August 2026.
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US business activity experienced a significant acceleration in August 2026, reaching its highest growth rate since April 2022. The S&P Global flash US composite purchasing managers index (PMI), a key indicator of economic health, rose to 56.0 in August from 54.5 in July. A reading above 50 signifies expansion in activity.
This surge in activity was primarily driven by a robust performance in the services sector, which saw its fastest growth since December 2024. While manufacturing activity continued to expand, its growth slowed, partly due to reduced inventory building and supply delays. Chris Williamson, chief business economist at S&P Global Market Intelligence, highlighted that US business is “booming,” with firms reporting the fastest output growth in over four years.
The improved business outlook also fueled a notable increase in hiring, with employers gaining confidence. This marks the fastest pace of job growth since January 2025. Despite this positive trend, businesses remain cautious about the impact of Middle East conflicts on supply chains and energy prices. However, a measure of future output expectations reached a nine-month high, suggesting continued optimism. Price pressures also moderated in August, particularly in terms of selling price inflation, although input cost inflation remained elevated due to higher energy prices.
The survey data for the third quarter of 2026 currently indicates an annualized growth approaching 3.0%, a solid increase from the 1.5% pace observed in the second quarter. The US economy has shown resilience in the first half of 2026, with GDP growth at 1.5% annually in the second quarter. This expansion is increasingly driven by investment in productivity-enhancing technologies.