US Economy Near Stalling Point As Consumer Demand Weakens, Survey Says  

• U.S. business activity approached the stagnation point in August, with growth at its weakest since February as demand for new business in the vast service sector contracted.
• S&P Global said its flash U.S. Composite PMI index, which tracks manufacturing and service sectors, fell to a reading of 50.4 in August from 52 in July, the biggest drop since November 2022. While August's reading was the seventh straight month of growth, it was only fractionally above the 50 level separating expansion and contraction as demand weakened for both manufactured goods and services.
• For months, a strong labour market and resilient consumer spending have increasingly assuaged fears of recession and led to upward revisions of GDP growth forecasts. However, Wednesday's data painted a more tepid picture of the economy.
• Service sector business activity growth was the slowest since February at 51.0 in August, and the Manufacturing PMI fell deeper into contraction territory at 47.0 down from 49.0 in July, the fourth straight month of contraction.
• Consumer demand posed a substantial drag on revenue for firms, as new business and orders contracted for firms across all sectors. New business in the service sector declined for the first time in six months, falling to 49.2 from 51.0 the month prior.
• Both manufacturing and service sector businesses tamed price hikes to attract more customers and slowed headcount growth to compensate for resurgent input costs.

(Source: Reuters)