Investing.com - U.S. private sector activity slowed in August, according to survey data released on Thursday.
The preliminary reading of the Markit services purchasing managers’ index came in at 55.2 this month, down from 56.0 in July.
Economists had forecast the index to slip only to 55.9.
The manufacturing PMI fell to 54.5 in August, compared to 55.3 a month earlier.
Analysts had expected a reading of 55.1.
The composite output index, which measures the combined output of both the manufacturing and service sectors, fell to 55.0 this month from 55.7 in July.
The consensus forecast was looking for an increase to 56.3.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The report highlighted the continued loss of momentum from the three-year peak seen in May and noted that payroll numbers also increased at the slowest since June 2017.
“On a more positive note, inflationary pressures moderated in August, reflecting the least marked rise in average cost burdens since the start of 2018,” the report indicated.
Despite the drop in the composite index, IHS Markit chief economist Chris Williamson still considered the American economy to be growing at a “solid rate” which he calculated to be equal to a 2.5% expansion on an annualized basis.