The U.S. economy continues to demonstrate resilience, fueled by robust service and manufacturing activity. According to S&P Global Market Intelligence’s Chris Williamson, the August Services PMI final reading, while slightly lower than initial estimates and below July levels, still stands as the second strongest of the year. This positive trend, coupled with strong manufacturing performance, indicates a potential 2.4% annualized growth rate for the third quarter. Increased customer demand has led to hiring sprees in the service sector, while manufacturing is also resuming recruitment efforts. However, these upbeat indicators are countered by concerns about future economic prospects and rising inflation. Survey data reveals potential downside risks to growth in the coming months, as import tariffs have inflated prices for goods and services. Inflationary pressures persist as a result.