US service sector fuels acceleration in business activity, S&P Global says

"U.S. business is booming, with firms reporting the fastest output growth for over four years so far in the third quarter as the expansion picked up further momentum in August," Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement. "The survey data for the third quarter are currently pointing to annualized growth approaching 3.0%, up solidly from the 1.5% pace seen in the second quarter."

New services business growth was the fastest since December 2024, allowing services hiring to grow by the most in 19 months.

The factory side of the slate showed the continued strains of the Iran war, which has led to the effective closure of the vital Strait of Hormuz, disrupting the flow of key commodity supplies and sending energy prices higher. Order growth that had jumped after the war began nearly six months ago as companies sought to pad inventories slowed for a fourth straight month, and factory output growth was the weakest in 13 months.