US Services Economy Soars To Highest Since April 2015 As Manufacturing Slumps

Tyler Durden's picture

The US Manufacturing economy continues to languish near one-year lows (in line with the collapse in 'hard data' in recent months) but US Services are soaring to their highest level since April 2015.

Manufacturing was ugly across the board...

Weaker increases in both output and new orders were key factors weighing on the headline manufacturing PMI in the latest survey period. Production volumes expanded at the slowest rate for 14 months in August, while new business growth weakened from July’s four-month high. Consequently, purchasing activity rose at a softer pace while firms also registered slower increases in inventory levels. Latest data signalled a further pick up in the rate of input price inflation at US goods producers.

But everything is anecdotally awesome in Services-land...

According to anecdotal evidence, strong economic conditions and an improvement in client demand had driven the latest upturn in activity. The latter was highlighted by a sharp and accelerated rise in new business received by services companies, with the rate of new order growth reaching a 25-month high in August. Greater intakes of new work and rising activity levels led firms to hire more staff in August.

Judging by the collapse in 'real' economic data, we suspect manufacturing survey respondents are on to something...

 

Commenting on the flash PMI data, Rob Dobson, Director at IHS Markit said:

The US economic growth story remained a tale of two sectors in August. The overall rate of expansion accelerated to a 27-month record, driven higher by strong and improved growth of business activity in the vast services economy. In contrast, the performance of manufacturing remained sluggish in comparison, with production volumes rising to the weakest extent in over a year.

 

“Nonetheless, the acceleration signaled for the economy as a whole suggests that GDP growth is still gaining momentum during the third quarter. With new order inflows also strengthening and job creation equalling its best pace in the year-to-date, economic growth should remain on course to outperform relative to the second quarter.

 

The principal weak spot in the economy placing downside risk on that outcome remains exports. Foreign goods orders fell – albeit only marginally – for the second month in a row, often blamed on the strength of the dollar. The domestic demand picture should hopefully remain relatively bright to offset such risks, however.”

Is GDP hope driving surveys?

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spastic_colon's picture

took some clients to lunch yesterday.........3 people, 2 ice tea, 1 water, 2 salads, 1 soup & sandwich..........76 bucks with tip!....our servers name was Phuk Mee

FreeShitter's picture

Table for 4 in Miami ...250.00 for lunch.

Offthebeach's picture

100's are the new 20.  NO inflation. 

Anyways.

EBT Counselors...up!

Racial Indoctrinator....up!

Statue Pullers....Up!

Versailles On Potomac lobbyist....Up!

Russian investigators....down.

 

 

Also....re used sub prime.  Talked to a drunk.  Bought a POS Chrysler at a 4 car used car lot.  Well Fargo wrote the paper at 20%.  Both rear bearings failed.  Hasn't paid in a year.  Told them come get it.  Asked them were to take it.  They don't want it.  They call every now and then...Its now a 4 door junk shed. 

Ghost junkers.

 

optimator's picture

You reminded me of my decades ago three martini lunches.  I can remember one customer (only lawyers and hookers have 'clients') saying that our economy would eventually consist of us selling hamburgers to each other.

Rainman's picture

Awesomeness defined : Anecdotal evidence is based on hearsay rather than hard facts.

Stormtrooper's picture

Not hearsay!  I heard that my brother-in-laws, mothers, uncles, 6 year old grandson said the same thing.  Hard evidence.

I am Jobe's picture

Blow Jobs, Oipiods are keeping the economy going. Winning  Keep servicing each other welcome to Murika, 

LawsofPhysics's picture

LMFAO!!!!!  Let me guess, are those financial "services" or "products"?!?!?!

So, more useless fucking paper/digit pushing?

Let me be clear. Roll the motherfucking guillotines, NOTHING changes otherwise.

passerby's picture

So a schleper colony

willy up the creek's picture

Not to nit pick, but I think I would spell it 'shleper'.  FWIW.  Funny anyway.  Good comment.

A. Boaty's picture

Time for the Fed to publish a Do You Want Fries With That Index.

IronForge's picture

Outside of Construction,  it's like SoCal.

Deep Snorkeler's picture

President Calvin Coolidge, 1927

"The business of America is business."

2017

"The business of America is fraudulent business."

 

junction's picture

You know, of course, all these economic reports are phoney, one guy somewhere makes up a bunch of numbers and everyone copies those numbers.  At least until robot rewrite A.I. "reporters" take over.  Almost no one makes money in retail anymore, look at Walmart, which is breaking even.  Amazon's profit center is its cloud services, with its biggest customer the CIA. The engine that drove the U.S. economy until 1978 was its manufacturng might. That is lone gone, thanks to Volcker insanely raising the prime rate to 22% to deal with the stagflation caused by the oil shock. Next on the chopping block, IMHO, are U.S. farm exports, with countries refusing to accept American GMO farm products, buying from Russia instead. And as the American economy fades, the politicians continue talking and having their flunkies release bogus economic data to the peasants.