U.S. ISM Services Sector Expands for Two Straight Months; Markit Hits Two-Year High

The U.S. August ISM Services Index came in at 51.5, slightly above expectations of 51.4, up from July's 51.4. New orders grew slightly faster, while the price index rose to 57.3, a three-month high. Employment stagnated, and backlog orders plunged as service providers continued to report excess inventory. August’s Markit Services PMI came in at 55.7, the highest in over two and a half years, suggesting third-quarter GDP growth of 2-2.5%.