The July Flash S&P Global Manufacturing 53.8 vs 54.3 estimate

U.S. flash PMI data for July came in mixed but broadly constructive for economic activity. Manufacturing softened slightly to 53.8 versus 54.3 expected and 53.9 previously, indicating expansion but a modest miss versus consensus. Services outperformed, rising to 53.6 from 51.2 and beating the 51.5 estimate, while the composite PMI also improved to 53.6 from 51.9, the strongest reading since November 2025. The data suggests the U.S. economy maintained momentum in July, supporting cyclical sentiment and potentially reducing near-term recession concerns. For equities, the stronger services and composite readings are mildly supportive for the S&P 500, though the manufacturing miss may temper enthusiasm. The release is also relevant for Treasury yields and the U.S. dollar as traders gauge growth strength and any implications for Fed policy.