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- U.S. services sector activity expands slightly more than initially estimated in July - IHS Markit
U.S. services sector activity expands slightly more than initially estimated in July - IHS Markit
The
latest report by IHS Markit revealed on Wednesday the seasonally adjusted final
IHS Markit U.S. Services Business Activity Index (PMI) stood at 59.9 in July, down
from 64.6 in June but slightly above the earlier released “flash” estimate of
59.8. The latest reading pointed to the slowest growth in business activity
across the U.S. service sector since February.
Economists
had forecast the index to stay unrevised at 59.8.
According
to the report, a softer rise in new business was a major contributor
to the less marked upturn in output in July. Nonetheless, domestic and foreign client
demand remained historically strong. Backlogs of work increased solidly and at the
joint-fastest pace since August 2020. Meanwhile, employment eased for the third
month running, as firms faced challenges in finding staff. On the price front, input
prices increased due to supplier shortages, while service firms also
highlighted greater fuel costs. The rate of inflation was much faster than the
series average, despite easing further from May's historic peak.
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