S&P Global PMIs for July are expected to show modest growth in manufacturing and services, with input costs eyed for Fed policy clues.
S&P Global will release July flash Purchasing Managers’ Indices for the US on Friday, offering an early read on economic activity. The Services PMI is forecast to dip to 51.0 from 51.2 in June, while the Manufacturing PMI is expected to rise to 54.5 from 53.9, both remaining above the 50 expansion threshold.
June’s inflation data eased expectations for a July Fed rate hike, but rising oil prices and geopolitical tensions have kept investors cautious. The CME FedWatch Tool shows an 80% probability of at least a 25 basis points rate increase by September, amplifying focus on input inflation and employment details in the PMI report.
Markets will scrutinize the data for signs of sustained growth or inflationary pressures, which could sway USD valuation and Fed policy bets.