From the earlier August flash print of 58.5, Markit's US Services PMI rose modestly to 59.5 but has now fallen 2 months in a row to the lowest since May. While a solid number in 'expansionary' >50 territory, pressure on margins continues as input cost inflation picks up. Employment gained also, prompting Markit to question "how long policymakers will be comfortable with the economy growing at this pace before hiking interest rates?"
Markit is excited still:
“This begs the question of just how long policymakers will be comfortable with the economy growing at this pace before hiking interest rates to cool things down. The data certainly raise the prospect of the first rate rise coming earlier than the current expectation of the second quarter of next year.”
