By Ovunc Kutlu
ISTANBUL (AA) - Business activity in the US service sector expanded in July with a gain in new orders, according to a Monday report by US-based financial services company S&P Global.
"Growth of new business also encouraged firms to take on extra staff, as did positive expectations for the future," said the report.
"Meanwhile, the rate of input cost inflation quickened, but companies increased their selling prices at a softer pace amid competitive pressures," it added.
The S&P Global US Services PMI Business Activity Index came in at 55.0 in July, below the market expectation of 56.0, following the June reading of 55.3. A reading above 50 indicates expansion and below 50 shows contraction.
Chris Williamson, chief business economist at S&P Global Market Intelligence, said over the past two months business activity in the service sector posted its best growth in over two years.
"Thanks to the relatively larger size of the service sector, the July PMI surveys are indicative of the economy continuing to grow at the start of the third quarter at a rate comparable to GDP rising at a solid annualized 2.2% pace," he added.