Preliminary
data released by S&P Global on Wednesday revealed that U.S. private sector
business activity grew strongly in early July, undermined by a stronger expansion
in activity in the services sector, while manufacturing slipped into contraction
for the first time in six months.
According to
the report, S&P Global flash U.S. Composite Purchasing Manager's Index
(PMI) Output Index came in at 55.0 early this month, up from 54.8 in June. The
latest reading pointed to the quickest
increase in business activity since April 2022 (56.0).
A reading above
50 signals an expansion in activity, while a reading below this level signals a
contraction.
S&P Global
flash services PMI checked in at 56.0 in July, up from 55.3 in June. The latest reading indicated the steepest
rise in activity across the sector since March 2022 (58.0). Economists had forecast the services
PMI to slip to 55.0.
Meanwhile, S&P
Global flash manufacturing PMI fell to 49.5 in July from 51.6 in the previous
month. The latest print suggested a deterioration in business conditions within
the goods-producing sector for the first time since December 2023 (47.9). Economists had predicted the manufacturing PMI to edge
up to 51.7.