US Economy Shows Surprising Strength in July PMI Data

The latest flash PMI data from S&P Global for July shows the US economy is holding up well. Manufacturing reached 53.8, while services also posted readings above 53. The composite index hit an eight month high of 53.6, which surprised analysts who were looking for signs of a slowdown.

Strong economic numbers often create a complicated path for the Federal Reserve. When the economy performs well, the central bank has more room to keep interest rates high to fight inflation. For crypto markets, this usually means that risk assets might face pressure if traders believe rates will stay elevated for a longer period.

Investors will watch the next round of inflation reports to see if this economic activity keeps prices moving upward. If the economy stays this resilient, it could change the timeline for expected rate cuts later this year.