S&P Global's composite PMI climbed to 53.6 in July, its highest reading in eight months, signaling roughly 2% annualized GDP growth in the third quarter. Both services and manufacturing expanded, with the services PMI rising to 53.6 and manufacturing at 53.8. Input costs rose at the fastest pace in 14 months, supplier delivery delays hit their worst level in nearly four years, and businesses reported the strongest selling-price increases in years, reducing the urgency for Federal Reserve rate cuts. Markets overwhelmingly expect the Fed to leave rates unchanged at its late-July meeting, and many economists now believe the first cut may not arrive until 2027. Companies with strong balance sheets, free cash flow, and pricing power are best positioned to outperform in a higher-for-longer rate environment.