The composite purchasing managers' index for services and manufacturers fell to 55.4 in August from 59.9 a month earlier.
The data report shows that limited capacity is translating into persistent inflationary pressures.
Us business activity continued to slow in AugustUnder the background of the shortage of raw materials and labor and the rising number of COVID-19 infectionThe rate of expansion of business activity slowed to its lowest level in eight months.。
The composite purchasing managers' index (PMI) for services and manufacturing fell to 55.4 in August from 59.9 a month earlier, according to data released by IHS Markit on Monday. A reading above 50 indicates an expansion in economic activity, which has fallen month by month since hitting a record high of 68.7 in May.
This month's pullback highlights the impact of supply chain disruptions on companies that are already struggling to meet market demand.. Service providers and manufacturers continue to face challenges in attracting employees and obtaining supplies.
Limited capacity is translating into persistent inflationary pressures. The input price index rose in August to the second-highest level since 2009. Reception price indicators have also risen, indicating that companies have achieved some success in passing on rising costs.
The IHS Markit service sector activity index fell to its lowest level since December and a new business indicator fell to an one-year low.