July PMI data pointed to a solid acceleration in the rate of expansion of the global service sector. However, this was largely centered on the US, as the rate of increase outside of the US was (on average) broadly unchanged from June.
At 54.9 in July, the JPMorgan Global Services Business Activity Index — a composite index produced by JPMorgan and Markit in association with ISM and IFPSM — rose to a 17-month high. Moreover, the month-on-month gain in the headline index (3.8 points) was the sharpest since February 2008. The latest expansion extended the current sequence of growth to four years.