Surge in Services Sector Drives Growth

In a promising sign for the US economy, the Composite Output Index, which measures both services and manufacturing business activity, rose to 54.6 in July. This marks a significant improvement from June's 52.9, reaching the highest level in seven months, according to S&P Global's preliminary report.

Mixed Signals from Manufacturing

While the Services Business Activity Index saw a notable increase from 52.9 to 55.2, the manufacturing PMI experienced a slight decline, dropping from 53.1 to 51.2, its lowest in two months.

Expert Insights on Economic Trends

"The flash PMI data suggests the US economy is expanding at an annualized rate of 2.3%, a sharp improvement from the 1.3% growth rate in the second quarter. However, the sustainability of this growth remains uncertain," commented Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.