U.S. business activity cools further in July – IHS Markit survey

WASHINGTON (Reuters) – U.S. business activity grew at a moderate pace for a second straight month in July amid supply constraints, suggesting a cooling in economic activity after what was expected to have been a robust second quarter.

FILE PHOTO: People shop at a street fair near Times Square in New York City, U.S., July 11, 2021. REUTERS/Jeenah Moon/File Photo

Data firm IHS Markit said on Friday its flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to a four-month low of 59.7 from 63.7 in June. A reading above 50 indicates growth in the private sector.

Businesses are battling shortages of raw materials and labor, which are fanning inflation, in the aftermath of the economy’s reopening after severe disruptions caused by the COVID-19 pandemic. The survey’s findings fit in with economists’ views that growth will slow after accelerating in the second quarter, thanks to massive fiscal stimulus.

Even with the…

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