(IHS Markit) US Business Activity Index was 59.9 in July, the lowest since February, and a decline from 64.6 recorded in June.
Softer rises in new business contributed to the decline in activity, despite domestic and foreign demand being at a historically strong level.
The Composite PMI Output Index also slowed down to an expansion of 59.9 in July, down from 63.7 in June.
Input costs rose at the fastest rate on record, with significant supply constraints and material shortages affecting activity.
Output charges increased at the third-highest rate in the series history.
Backlog of orders rose on rising client’s demand amid staff shortages.
The twelve-month expectations for output remained strong, although the degree of confidence fell to a five-month low on demand concerns in the coming months.
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