U.S. July PMI Stable but Shows Warning Signs for Growth

Huoxing Finance reports that on August 3, Chris Williamson, Chief Business Economist at S&P Global Market Intelligence, said: "Although the U.S. PMI figures for July remained stable, the underlying survey data reveal some warning signs for future growth trajectories. Production growth slowed noticeably in July, linked to a third consecutive month of weak new business growth, reflecting a reduction in inventory overhang following an unusually strong buildup of precautionary stocks in the second quarter. Additionally, increased supply chain delays, declining exports, and heightened customer resistance to high prices have added further pressure. Although inflationary pressures on raw material costs have slightly eased, inflation remains elevated due to persistently high energy prices and tariffs. In response, manufacturers have either attempted to raise selling prices to protect margins or sought to improve production efficiency, resulting in continued high factory gate price inflation in July, alongside a flattening of employment growth. Under these conditions, business optimism regarding the economic outlook has fallen to its lowest level since October last year, underscoring the downside risks to the near-term outlook."