U.S. business activity reaches eight-month high |
U.S. business activity expanded at its fastest pace in eight months in July, driven by strong demand for services as spending related to the FIFA World Cup and July 4 holiday celebrations offset slowing manufacturing activity. The S&P Global Flash Composite Purchasing Managers' Index (PMI) rose to 53.6, with the services PMI reaching its highest level since November 2025, while the manufacturing PMI eased to 53.8, its lowest reading since March. Despite the stronger overall activity, businesses reported mounting cost pressures and worsening supply chain disruptions. Input costs increased at the fastest pace since May 2025, fueled by higher energy and shipping costs, tariffs, and other inflationary pressures, while companies raised selling prices at the quickest rate in nearly four years. Manufacturers also experienced the longest supplier delivery delays since August 2022. Both service providers and manufacturers reported modest employment growth, although S&P Global warned that geopolitical tensions in the Middle East, ongoing supply chain disruptions, and rising prices could weigh on the economic outlook in the coming months.
|
|