• US S&P Global Composite PMI declined to 44.6 in August.
• US Dollar Index posts strong gains above 110.00 in the American session.

Economic activity in the US private sector contracted at a stronger pace in August than it did in July with the S&P Global Composite PMI dropping to 44.6 from 47.7. This print came in weaker than the flash estimate and the market expectation of 45.

Further details of the publication revealed that the S&P Global Services PMI slumped to 43.7 from 47.3 in July, compared to the flash estimate of 44.1.

Commenting on the PMI report, "August saw the US economy slide into a steepening downturn, underscoring the rising risk of a deepening recession as households and business grapple with the rising cost of living and tightening financial conditions," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.

Market reaction

The US Dollar Index showed no immediate reaction to this report and was last seen rising 0.6% on the day at 110.25.