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US private-sector activity accelerates in July flash PMI
The S&P Global Composite PMI rose to 53.6, while the USD Index was virtually flat at 101.45.
Business activity in the United States’ private sector expanded at an accelerating pace in July, according to the preliminary S&P Global Composite Purchasing Managers’ Index (PMI). The index improved to 53.6 from 51.9 in June, with the Services PMI rising to 53.6 from 51.2 and the Manufacturing PMI edging down to 53.8 from 53.9.
S&P Global Market Intelligence economist Chris Williamson said the “flash” PMI data were broadly consistent with GDP growing at an annualized 2.0% in the third quarter, versus an annualized 1.2% pace signaled for the second quarter. FXStreet also noted that the data were not showing a noticeable impact on the US dollar’s performance at the time of publication.
At the time of press, the USD Index was virtually unchanged on the day at 101.45. Ahead of Friday’s release of the July flash PMIs, market participants expected the Services PMI to dip to 51.0 from 51.2, while the Manufacturing PMI was expected to rise to 54.5 from 53.9, with both forecasts staying in expansion territory above 50.
The PMI surveys also include breakdowns on employment and input inflation that could affect the US dollar’s valuation, with FXStreet pointing to potential volatility if input costs ramp up even as the US’s softer-than-expected June inflation data had eased expectations for a Federal Reserve rate hike in July.