US PMI Manufacturing rose to 51.3 in July, up from 49.8, making a 6-month high. PMI Services rose to 49.6, up from 47.9, also a 6-month high but stayed in contraction. PMI Composite rose to 50.0, up from 47.9.
Chris Williamson, Chief Business Economist at IHS Markit, said:
“While the stabilisation of business activity in July is welcome news, the lack of growth is a disappointment. Moreover, a renewed acceleration in the rate of loss of new business raises concerns that demand is faltering. Many companies, notably in consumer-facing areas of the service sector, linked falling sales to re-imposed lockdowns.
“Firms’ costs have meanwhile spiralled higher, surging at the steepest rate for seven years in the service sector, in part due to the additional burdens of safeguarding against the coronavirus.
“Thankfully, the job-shedding seen over the prior four months has come to an end, but companies remain wary of taking on more staff given the weakness of current order books. Future expectations have improved, however, with optimism rising to the highest for over a year, as increasing numbers of firms see better times ahead. Hopes are qualified, however, by uncertainty over the coronavirus outbreak and the political environment as November’s election draws closer.”
