Source: IHS Markit
The expansion of the United States’ business activity posted a five-month low in July, on the back of lower new business during the period.
- The seasonally adjusted final IHS Markit US Services PMI Business Activity Index stood at 59.9 in July.
- The latest reading compares with the 64.6 in June and the slowest since February.
- The slowdown was attributed to the softer growth of the new business, which was driven by continued COVID-19 vaccinations and the easing of restrictions.
- New export orders climbed for the fifth straight month as key export markets reopened. Expansion slowed to the weakest in four months.
- Work backlog for the month rose due to the staff shortages and hiring difficulties.
- Optimism for the next year remained upbeat but waned, reflecting the rising concern over the spread of the Delta variant.
- Inflationary pressures are expected to persist in the coming months, even as prices have moderated from the peak in May.