S&P Global US Composite PMI Final

Published:

A monthly final survey reading on business activity across the US manufacturing and services sectors.

Economic IndicatorsModerate volatilityS&P Global US Composite PMI FinalUS Composite PMI FinalUnited States Composite PMI FinalUS Composite Purchasing Managers' Index Final

Full explanation

The S&P Global US Composite PMI Final is a monthly survey-based indicator of private-sector business activity in the United States. It combines manufacturing output and services business activity into a single diffusion index, where 50 separates overall expansion from contraction compared with the previous month. S&P Global compiles it from responses from US manufacturers and service providers, and the final reading updates the earlier flash estimate using a more complete set of survey returns.

Why traders watch it

It offers a relatively early, broad read on US private-sector momentum. Unexpected results can affect expectations for economic growth, inflation pressure and the likely path of Federal Reserve policy, with possible implications for the US dollar and interest-rate markets.

Market interpretation

US dollar
Surprises may shift views on relative US economic momentum and Federal Reserve policy expectations.
US Treasury yields
The activity and price components may influence expectations for growth, inflation and policy rates.
US equity index futures
The release may affect assessments of demand conditions, margins and the interest-rate outlook.

Stronger vs weaker outcomes

A reading above expectations, or a move further above 50, may be viewed as evidence of firmer private-sector activity. A reading below expectations, or a move further below 50, may be viewed as a sign of softer activity. The response can also depend on the report's prices, employment, new-orders and sector-level details.

Stronger than expected

A higher-than-expected reading, particularly if it moves further above 50, may be interpreted as firmer private-sector activity.

Weaker than expected

A lower-than-expected reading, particularly if it moves further below 50, may be interpreted as softer private-sector activity.

In line with expectations

Above 50 signals expansion; below 50 signals contraction compared with the prior month.

Typical volatility

Moderate. This is a survey diffusion index rather than a direct measure of output or spending. The final figure can revise the earlier flash estimate, and its signal may differ from later official economic statistics.

Trading considerations

  • Compare the final reading with the earlier flash estimate as well as the consensus expectation.
  • Review new orders, employment and prices components instead of relying only on the headline composite index.
  • Consider the simultaneous US services PMI final, which contributes to the composite measure.
  • Be aware that liquidity and spreads can change around scheduled US data releases.

Educational guidance only — never a trading signal or recommendation.

Related indicators