Overview
- Flash PMI releases on Friday showed overall private‑sector expansion in July, led by the US composite at 53.6 where services were the main driver.
- Japan registered a 53.1 composite reading with factory output growing at its fastest pace since February 2014 as manufacturers boosted production and hiring.
- The euro zone returned to growth with a 51.9 composite PMI driven by renewed new‑order flows and the first modest rise in payrolls for 2026.
- India’s HSBC/S&P flash composite slipped to 54.3 as services activity cooled sharply, leaving the economy more reliant on manufacturing and stronger export demand.
- Survey respondents and market moves linked the re‑intensification of Middle East hostilities to higher input and fuel costs, prompting firms to build inventories, dent confidence and raise questions for central banks about near‑term inflation and policy paths.