The S&P Global US Services PMI Business Activity Index rose to a seven-month high of 55.7 in July, up from 52.9 in June. The latest reading signaled a marked monthly expansion of output in the service sector, extending the current sequence of growth to two-and-a-half years.
Growth gained momentum in the US service sector during July. Business activity increased at the sharpest pace in the year-to-date amid a solid and accelerated expansion in new business.
Companies responded to higher workloads by hiring additional staff, albeit only modestly. Meanwhile, tariffs continued to add to inflationary pressures, resulting in faster increases in both input costs and output prices.
The S&P Global US Composite PMI rose to 55.1, up from 52.9 in June and signaling a marked monthly expansion in business activity. The acceleration in the pace of growth was centered on the service sector as manufacturing production rose at a softer pace.
The rate of growth in new orders also quickened, while employment increased modestly. Inflationary pressures intensified, with selling prices rising at the fastest pace since August 2022. Companies remained optimistic that output will rise over the coming year, but sentiment eased to a three-month low.