Final Services/Composite PMIs Revised Lower In July But Still Solid

• Services PMI revised down to 55.0 (flash and cons 56.0) for a modest decline from 55.3 in June.
• Composite PMI revised down to 54.3 (flash 55.0) for a slightly larger decline from 54.8 in June.
• Despite the dip, the still firmly above 50 readings points to a solid backdrop and shows no sign of the surprise weakness seen in the June ISM Services report (July due 1000ET).
• From the press release: "The US service sector began the second half of the year as it ended the first, seeing a marked expansion of business activity in July on the back of a rise in new orders. Growth of new business also encouraged firms to take on extra staff, as did positive expectations for the future."

Price pressures are mixed, with stronger input costs but output price inflation on balance easing for a second month running:

• “Service providers signalled a further sharp rise in input costs, with the rate of inflation quickening to a four-month high. The latest increase was also sharper than the series average. Respondents indicated that higher wage and transportation costs had been the main factors pushing up input prices.”
• “While a number of companies responded to higher input costs by increasing their selling prices accordingly, there were other reports that competitive pressures led some firms to lower their charges. The rate of output price inflation was solid, but eased for the second month running to the slowest since January”