S&P Global Market Intelligence chief business economist Chris Williamson said
the US July PMI held steady, but survey internals point to near-term downside
risks to growth. Production growth slowed sharply in July, linked to a third
consecutive months of weak new orders and inventory drawdown after unusually
strong precautionary stockbuilding in Q2. Worsening supply-chain delays, falling
exports and increasing customer resistance to high prices added pressure.
Input-cost inf eased slightly, but elevated energy prices and tariffs keep
overall inf high. Firms are either trying to raise prices to protect margins or
boosting efficiency; factory-gate price inf remained elevated and employment
growth moderated. Business optimism on the outlook fell to its lowest since
October last year.
