Eight month highPrelim was 53.6Prior was 51.2Composite index 54.5 vs 53.6 prelimPrior composite index 51.9The rate of job creation was the strongest for eight months Overall costs rising at the fastest pace since May 2025Charge inflation remained above its long-run trend and accelerated to a 14-month high in July
The ISM services report is due at the top of the hour and expected at 54.5 vs 54.0 previously. This is a sign of upside risks, which would be a US dollar tailwind and could weigh on stocks. Eyes will be on the inflation numbers in particular.
Chris Williamson, Chief Business Economist at S&P Global Market Intelligence
“The final July PMI has come in stronger than the earlier flash estimate, signaling an encouraging acceleration in economic growth at the start of the third quarter. The PMI points to GDP rising at an annualized rate of 2.3%, following a 1.5% increase indicated for the second quarter. Business optimism has meanwhile climbed to its highest since last November.
“Some caution is needed in interpreting these improvements, as the stronger performance partly reflected temporary factors. We note that the biggest improvement in demand in July was reported among consumer-facing service providers, spending on which surged at a rate not seen for over four years linked to the FIFA World Cup and US Independence Day events.
“More importantly, businesses benefited in early July from a tailwind of reduced geopolitical uncertainty and lower oil prices. With hostilities in the Gulf escalating as the month progressed, the geopolitical environment is now likely once again acting more as a headwind to growth while exacerbating already-elevated price pressures.”
This article was written by Adam Button at investinglive.com.