U.S. business activity climbs to 27-month high in July; pricing power diminishing

U.S. business activity reached a 27-month high in July, with S&P Global reporting its flash Composite PMI Output Index at 55.0, up from June's 54.8. This expansion was driven by a strong services sector, despite a slight easing in manufacturing. Prices charged for goods and services rose at the slowest rate since January, aligning closely with the Federal Reserve's 2% inflation target.