US S&P Global Manufacturing PMI slumps to 49.5, Services PMI improves to 56 in July
- S&P Global Composite PMI in the US edged higher in July's flash estimate.
- US Dollar Index stays under bearish pressure, declines toward 104.00.
The business activity in the US private sector continued to expand at a healthy pace in July, with the preliminary S&P Global Composite PMI improving to 55 from 54.8 in June.
The S&P Global Manufacturing PMI declined to 49.5 from 51.6 in the same period, while the Services PMI rose to 56 from 55.3.
Assessing the PMI surveys' findings, "the flash PMI data signal a ‘Goldilocks’ scenario at the start of the third quarter, with the economy growing at a robust pace while inflation moderates," said Chris Williamson, Chief Business Economist at S&P Global Market Intelligence.
"In terms of inflation, the July survey saw input costs rise at an increased rate, linked to rising raw material, shipping and labour costs," Williamson added. "These higher costs could feed through to higher selling prices if sustained, or cause a squeeze on margins."
Market reaction
The US Dollar came under bearish pressure with the immediate reaction. At the time of press, the US Dollar Index was down 0.3% on the day at 104.15.
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
