WASHINGTON — U.S. business activity expanded at its fastest pace in eight months in July, according to the latest S&P Global flash Purchasing Managers’ Index (PMI), offering encouraging news for business owners after months of uncertainty surrounding tariffs, inflation and slowing growth.

The Composite PMI rose to 53.6, signaling continued expansion as consumer spending strengthened and service-sector companies reported increased demand. Manufacturers also remained in growth territory, although factory activity continued to lag the broader economy.

For businesses, the report suggests customer demand has remained healthier than many economists expected despite elevated interest rates and geopolitical uncertainty. Strong travel, entertainment and seasonal spending helped support service providers, while companies continued hiring to meet demand.

The report also highlighted ongoing concerns. Businesses continued reporting higher input costs, particularly for energy and imported materials, while many said tariffs and supply-chain uncertainty remain key challenges heading into the second half of the year.

Economists cautioned that some of July’s strength reflected temporary seasonal factors, including summer travel and holiday spending, and warned that higher fuel prices could weigh on consumer activity if they persist.

The data will be closely watched by Federal Reserve policymakers as they prepare for next week’s interest-rate meeting, with investors looking for clues on whether resilient economic growth could delay future rate cuts.

JBizNews Desk | Wall Street

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