US business activity grew at a sharply increased rate in July, according to early ‘flash’ PMI® data, marking a strong start to the third quarter. Employment growth was also sustained. However, private sector expansion became increasingly unbalanced, as manufacturing business conditions deteriorated in contrast to a strengthening services economy, the latter fueled by rising domestic demand. Business confidence in the outlook meanwhile deteriorated in both sectors as companies reported ongoing concerns over the impact of government policies, especially in relation to federal spending cuts and tariffs. Alongside upward ... (full story)