US Economy Expands at Fastest Pace This Year, but Factories Slide Into Contraction

The economy entered the third quarter with solid momentum, although a pullback in factory activity signals fresh challenges ahead.

Workers fix a road in Los Angeles on July 22, 2025. John Fredricks/The Epoch Times

The U.S. economy accelerated in July at its fastest pace so far in 2025, according to a closely watched purchasing managers’ survey released on July 24, which showed surging demand for services—even as factory activity slipped back into contraction.

S&P Global’s flash U.S. Composite PMI Output Index climbed to 54.6 this month from 52.9 in June, signaling the strongest overall growth in seven months and extending a 30‑month run of expansion.