Sharpest expansion of U.S. private sector output for six months
At 54.2, up from 53.9 in June, the seasonally adjusted IHS Markit Flash U.S.
Composite PMI Output Index signalled the strongest rate of expansion since January.
The pickup in business activity growth was driven by a steeper increase in manufacturing production in July (‘flash’ output index at 54.3, up from 52.6 in June).
Meanwhile, service providers indicated that activity growth was unchanged from June’s five-month peak (‘flash’ business activity index at 54.2 in July).
Higher levels of business activity were supported by a robust and accelerated upturn in new work during July.
Measured overall, the latest increase in new orders received by private sector companies was the strongest for six months.
Private sector payroll numbers expanded at a solid pace in July, with the rate of job creation the fastest so far in 2017.
Meanwhile, stronger input price pressures across the manufacturing sector contrasted with a moderation in cost inflation among service providers in July.
The composite index is based on original survey data from the IHS Markit U.S. Services PMI and the IHS Markit U.S. Manufacturing PMI. ■