U.S. Economic Growth and Inflation Concerns Amid Strong Service and Manufacturing Data

According to BlockBeats, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, noted that despite the U.S. services PMI final reading being lower than the initial estimate and below July's level, the August data remains the second strongest this year. Coupled with robust manufacturing PMI performance, these findings suggest that the U.S. economy's annualized growth rate for the third quarter could reach 2.4%. At the same time, increased orders reflect rising summer customer demand, prompting service providers to hire more employees, with manufacturing also resuming recruitment. However, the positive news on current growth and hiring is overshadowed by concerns about future prospects and inflation. Survey data indicates some downside risks to economic growth in the coming months, while inflation poses an upside risk as import tariffs have impacted goods and services prices.