Business Climate Improved in Aug

AUG BUS CLIM INDICATOR 91.1; JUL 84.3

AUG MFG SENTIMENT 92.9; JUL 82.4

AUG SERVICES SENTIMENT 93.5; JUL 88.4

• Business climate continued its recovery, ticking up 6.8pt to 91.1 in Aug, beating expectations looking for a smaller increase to 87.
• However, business sentiment remains below both the long-term avg (100) and Feb's pre-crisis level (105).
• Aug's uptick was broad-based with every category showing monthly gains
• Manufacturing sentiment rose 10.5 pt to the highest level since Mar, marking the fourth successive gain since the index slumped in Apr.
• Similarly, service sector confidence edged up 5.1pt to 93.5, its strongest reading since Feb (105.9).
• Employment climate saw the largest uptick in Aug, rising by 12pt to 88.3, while business climate in the retail trade sector gained 5.1pt to 93.1.