According to Odaily, the preliminary reading for the U.S. S&P Global Services PMI in July reached 56, marking the highest level since March 2022. In contrast, the preliminary reading for the U.S. S&P Global Manufacturing PMI in July was recorded at 49.5, the lowest since December 2023.

The data indicates a significant divergence between the service and manufacturing sectors in the U.S. economy. The service sector continues to show robust growth, while the manufacturing sector faces challenges. The PMI, or Purchasing Managers' Index, is a key indicator of the economic health of these sectors, with a reading above 50 indicating expansion and below 50 indicating contraction.

The rise in the services PMI suggests strong demand and activity in the service sector, which includes industries such as finance, healthcare, and retail. This growth could be attributed to increased consumer spending and a rebound in service-related activities post-pandemic. On the other hand, the decline in the manufacturing PMI points to a slowdown in manufacturing activities, possibly due to supply chain disruptions, higher input costs, and weakening demand.

These contrasting trends highlight the uneven recovery within different sectors of the U.S. economy. Policymakers and economists will likely monitor these indicators closely to gauge the overall economic outlook and to formulate appropriate responses to support both sectors. The continued strength in the service sector may provide some cushion to the broader economy, even as manufacturing faces headwinds.