Prior month manufacturing PMI 53.9 Prior month services PMI 51.2.Prior month composite PMI 51.9Flash manufacturing PMI for July 53.8 versus 54.3 expected. This is a 4-month low but remains above the 50 level. Flash services PMI for July 53.6 versus 51.5 expected. Strongest since November 2025Flash composite PMI for July 53.6 versus 51.9 last month. Strongest since November 2025Chris Williamson, Chief Business Economist at S&PGlobal Market Intelligence:“US businesses reported a good start to the thirdquarter, the ‘flash’ PMI survey data broadly consistentwith GDP growing at an annualized 2.0% against a 1.2%pace signalled for the second quarter. The month sawan encouraging return to hiring by companies, withemployment rising for the first time in three months.However, some of this improvement may prove shortlived as July saw hospitality spend boosted by the FIFAWorld Cup and USA 250 anniversary activities. It was alsoworrying – though not unexpected – to see manufacturinggrowth weaken as some of the stock building seen inprior months showed signs of fading. Instead, July sawa concerning intensification of supply chain delaysand accompanying renewed upturn in price pressures,constraining growth and subduing demand.Events over recent days in the Middle East will have onlyfurther exacerbated these supply chain and price worriesand raise downside risks to the near-term outlook for theeconomy, hinting that July’s upturn may not be the startof an improving trend.”Details from S&P global:Future SentimentBusiness confidence improved to an 8-month high overall.Services optimism climbed to its strongest level since September, helped by lower energy prices and improving consumer spending prospects.Manufacturing confidence slipped to its weakest since October, weighed down by:Softening demandGlobal trade concernsTariffsGeopolitical uncertaintyElevated costsEmploymentEmployment increased only slightly after two months of declines.Hiring remained cautious in both manufacturing and services.High costs and trade uncertainty limited hiring, with many firms choosing not to replace departing workers.Some businesses continued to report labor shortages.Supply ChainsSupply chain disruptions worsened further.Manufacturing supplier delivery times lengthened at the fastest pace since August 2022.Delivery delays have now deteriorated for 11 consecutive months.Major drivers:Shipping disruptions around the Strait of HormuzStockpiling of inventoryTariff-related supply constraintsInflation & PricesInput cost inflation accelerated to its highest level since May 2025.Higher costs reflected:Elevated energy pricesHigher shipping costsTariffsBroad-based supplier price increasesBusinesses passed more of those costs on to customers.Overall selling price inflation reached its highest since August 2022.Services price inflation climbed to its highest level in nearly four years, while manufacturing price inflation remained elevated but eased somewhat. This article was written by Greg Michalowski at investinglive.com.