U.S. private sector companies experienced a robust rise in overall business activity during July, supported by an improving economic backdrop and another sharp upturn in incoming new work. Relatively strong rates of business activity growth were recorded in both the manufacturing and service sectors. Intense cost pressures continued in July, which resulted in a sharp and accelerated increase in average prices charged by private sector firms. The latest rise in output charges was the fastest since composite data were first collected in October 2009.

The seasonally adjusted IHS Markit Flash U.S. Composite PMI Output Index posted 55.9 in July, down slightly from 56.2 in June and the lowest reading for three months. Nonetheless, the headline index remained well above the 50.0 nochange threshold and signalled another robust expansion of overall private sector output.