US Economy Surges: Manufacturing Rebounds, Services Thrive, and Home Sales Climb

With the S&P Global flash Manufacturing PMI soaring to 53.3, beating forecasts of 49.7 and rising from 49.8 in July, the US economy showed strong growth in August 2025. This reflected a sharp rebound in factory activity, pointing toward resumed momentum in manufacturing following months of contraction. Driven by rising output and demand, the data shows a rising confidence in the manufacturing industry that points to a favorable change in industrial performance.

Though marginally lower at 55.4 than July's 55.7, the Services PMI was still far above the 54.2 consensus, underlining the ongoing vigor in the service sector. Strong new business, growing sales, and the quickest backlog increase since May 2022 together with excellent job gains drove growth. Rising input expenses, nevertheless, caused the greatest surge in output prices in three years, implying possible inflationary pressures notwithstanding the industry's strong growth.

Beating predictions of 3.92 million and up from June's 3.93 million, existing home sales in July increased 2.3% to an annualized pace of 4.01 million units. Price pressures eased somewhat as inventory reached its highest since May 2020, although the median home price reached $435,300, extending a 24-year run of year-over-year gains. Regional sales changed; while the West saw gains, other areas saw declines, stressing a resilient housing market in the face of better supply dynamics and consistent economic expansion.