Despite recent data showing a strong service sector performance in August, with the S&P Global Market Intelligence report suggesting the second-strongest reading this year, U.S. economic growth prospects remain mixed. While the U.S. services PMI final reading was lower than initial estimates and below July’s level, indicating a slowing pace of expansion, it still points to strong annualized growth of 2.4% for the third quarter. Robust manufacturing data further supports this trend. The increase in orders reflects growing customer demand during the summer months, leading service providers to hire more employees, while manufacturing firms also resumed recruitment efforts. However, this positive news is countered by concerns about future economic prospects and inflation. Survey data indicates potential risks to growth in upcoming months, while rising import tariffs have driven up prices for goods and services, creating inflationary pressures.