Global Services Growth Led by US and India

Global business activity accelerated in July, with the J.P. Morgan Global Composite PMI reaching its highest level this year, indicating a 2.7% annualized economic growth rate. India and the US led the expansion, with India’s services sector at an 11-month high and the US Composite PMI at a 7-month peak, both fueled by robust new orders. Global selling price inflation rose to a 26-month high, largely due to increased US prices linked to tariffs, though inflation was more subdued elsewhere. Bangladesh experienced faster growth in both manufacturing and services, tempered by weak exports and employment. Australia’s exports hit a 16-month high, while China saw modest recovery in high value-added industries, though overall growth slowed. Canada’s services sector continued contracting but showed signs of improvement in business sentiment and hiring despite ongoing tariff pressures.