US Business Activity Accelerates in 8 Months
US business activity grew at its fastest pace in eight months in July. The S&P Global Flash Composite PMI, released on Friday (July 24), rose to 53.6, with a reading above 50 indicating expansion.
Growth was primarily supported by strong domestic demand in the services sector. Services activity rose to 53.6, the highest level since November 2025, driven by increased demand during the World Cup and Independence Day celebrations.
Conversely, the manufacturing PMI fell to 53.8, the lowest level since March. Factory production began to slow amid worsening supply chain disruptions and rising operating costs.
Input cost inflation was the strongest since May 2025 due to rising energy prices, shipping costs, tariffs, and a number of other components. Companies also raised selling prices at the fastest pace in nearly four years.
Supply disruptions became more apparent after supplier delivery times recorded the biggest slowdown since August 2022. The conflict between the United States and Iran is expected to worsen trade routes, oil supply, and price pressures in the near term.
Despite various risks, increased activity boosted business confidence and rehiring. Employment rose for the first time in three months, but inflationary pressures and the Middle East conflict have the potential to limit continued US economic growth. (arl)
Source: Newsmaker.id
