The New York City skyline in the United States

United States PMI July 2024

United States: Services activity remains upbeat in July

The S&P Global U.S. Services Purchasing Managers’ Index (PMI) dipped to 55.0 in July from 55.3 in June. As a result, the index remained above the 50.0 no-change threshold, but signaled a softer—albeit still marked—improvement in services-sector business activity compared to the previous month.

July saw a solid increase in new orders, including a marginal rise in new business from abroad for the first time in six months, and concomitant increases in output and employment.

There was the quickest rate of input cost inflation in four months, primarily due to higher wage and transportation costs. However, the pace at which companies raised their selling prices softened for the second consecutive month due to competitive pressures. Finally, business sentiment remained optimistic, with expectations that output will continue to increase over the next 12 months.

Chris Williamson, chief business economist at S&P Global Market Intelligence, said:

“While manufacturers are reporting reduced demand for goods, this in part reflects a further switching of spending from consumers towards services such as travel and recreation. However, healthcare and financial services are also reporting buoyant growth, fueling a wide divergence between the manufacturing and service economies. Thanks to the relatively larger size of the service sector, the July PMI surveys are indicative of the economy continuing to grow at the start of the third quarter at a rate comparable to GDP rising at a solid annualized 2.2% pace.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest X Download Fullscreen