The recent survey also predicts that the federal funds rate will reach 3%-3.25% by the end of next year.

After a 0.9% decline in July, production at U.S. factories, mines, and utilities increased 0.8% in August, exceeding expectations.

The lowest annualized inflation since 2022 suggests high interest rates are finally starting to work.

Combined with a second month of expansion among manufacturers, the services data pushed the S&P Global composite purchasing managers index up to a 26-month high.

Elevated interest rates and a strong dollar force other currencies lower and complicate other central banks' plans to bring down borrowing costs.

Swiss rates, plus various other trends in the global economy—in chart form.

February purchasing managers index showed growth for a second straight month—for the first time in over a year.

And a measure of expected output in the coming year climbed to the highest since May 2022, boosted by firmer domestic demand.