Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Expand chart
Data: Investing.com; Chart: Axios Visuals

Early readings of IHS Markit's manufacturing and services purchasing managers' indexes rose by more than expected in August, showing continued improvement in expectations and output among U.S. firms.

By the numbers: The manufacturing index rose by 2.7 points month over month to 53.6, continuing the series' rise from 50.9 in July.

  • The services index rose by the most since March 2019, beating expectations and jumping to 54.8 (50 is the dividing line between growth and contraction).

What it means: Companies in both the manufacturing and services sectors saw a resurgence in new orders, the reports showed.

  • "The rate of job creation accelerated among service providers, with manufacturers indicating the first rise in staff numbers since February," Markit said in its report.
  • “Total new business rose for the first time since February and at a solid rate. Manufacturing firms registered a steeper expansion in new order inflows than in July, while service providers signaled a renewed increase in sales."

Yes, but: PMI numbers only measure month-to-month change and whether businesses say things got better or worse. The surveys do not account for the amount of change, so they don’t show how much ground still needs to be made up after steep declines that began in March.

Go deeper

Wall Street wonders how bad it has to get

Illustration: Aïda Amer/Axios

Wall Street is working out how bad the economy will have to get for Congress to feel motivated to move on economic support.

Why it matters: A pre-Thanksgiving data dump showed more evidence of a floundering economic recovery. But the slow drip of crumbling economic data may not be enough to push Washington past a gridlock to halt the economic backslide.

McConnell circulates revised GOP coronavirus stimulus plan

Senate Majority Leader Mitch McConnell (R-Ky.) talks with reporters in the Mansfield Room at the U.S. Capitol. Photo: Chip Somodevilla/Getty Image

Senate Majority Leader Mitch McConnell circulated a new framework for coronavirus stimulus legislation to Republican members on Tuesday that would establish a fresh round of funding for the small business Paycheck Protection Program and implement widespread liability protections, according to a copy of the plan obtained by Axios.

Driving the news: The revised GOP relief draft comes after McConnell's meeting with House Majority Leader Kevin McCarthy, Treasury Secretary Steven Mnuchin and White House chief of staff Mark Meadows, during which they went over in detail what provisions would get backing from President Trump.

Barr appoints special counsel to continue investigating origins of Russia probe

Photo: Mandel Ngan/AFP via Getty Images

Attorney General Bill Barr told the AP on Tuesday he appointed veteran prosecutor John Durham as a special counsel on Oct. 19 to continue investigating the origins of the FBI's 2016 probe into possible coordination between the Trump campaign and Russia.

Why it matters: It's an extra layer of protection for Durham to continue investigating possible misconduct by Obama-era intelligence officials past Joe Biden's inauguration as president.