S&P Global’s composite PMI rose to 53.6 in July, reinforcing expectations of prolonged higher interest rates amid resilient economic activity.
US business activity accelerated in July, with S&P Global’s composite PMI climbing to 53.6, its highest level in eight months. The reading, up from 51.9 in June, suggests annualized GDP growth of roughly 2% in the third quarter, driven by gains in both services and manufacturing sectors.
The services PMI rose to 53.6, while manufacturing held steady at 53.8. Rising input costs and the fastest selling-price increases in years indicate persistent inflation pressures, reducing the likelihood of Federal Reserve rate cuts before 2027.
The data underscores a resilient economy, complicating the Fed’s path to easing monetary policy despite elevated borrowing costs. Companies with strong balance sheets and pricing power are positioned to outperform in this environment.