Highlights of the Markit US Services PMI
- Preliminary Services PMI (from July 23rd) 59.8. The index is the lowest in five months but still remains well above the 50.0 level
- June services PMI was 64.6. May 70.4 (highest on record)
- new export orders increase for the fifth month running in July as the foreign markets reopen
- cost burdens increased at a substantial pace in July with input prices rising due to supply shortages. Service firms also reported higher fuel costs
- service provider sought to pass on higher costs to their clients. Output charges rose markedly, but the rate of increase softened from the previous month.
- Composite index also comes in at 59.9 vs 59.7 preliminary. The June index came in at 63.7.
- Some companies stated that capacity constraints hampered activity growth
- new business continue to rise in July and at one of the fastest rate since data collection began in October 2009
The IHS said:
- The pace of US economic growth cooled in July, according to the final PMI data, but remained impressively strong to suggest that GDP will rise robustly again in the third quarter
- Survey shows signs that capacities being constrained by a lack of raw materials and labor, inflationary pressures look to set to persist in the coming months, though it is encouraging to note that the overall rate of increase of selling prices for goods and services continue to moderate from May's recent peak.
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