US business activity expanded at the fastest pace in eight months as strong domestic demand for services offset cooling factory production, growing supply chain delays and rising costs.The S&P Global flash composite purchasing managers index rose to 53.6 in July, according to data released Friday. Figures above 50 indicate expansion.Activity at service providers climbed to 53.6, the highest since November 2025, as World Cup and July 4th celebrations boosted demand in hospitality and other service industries.Also read: Why US' Russia act need not worry IndiaThe group's manufacturing gauge fell to 53.8, the lowest level since March."July saw a concerning intensification of supply chain delays and accompanying renewed upturn in price pressures, constraining growth and subduing demand," Chris Williamson, chief business economist at S&P Global Market Intelligence, said in a statement. "Events over recent days in the West Asia will have only further exacerbated these supply chain and price worries and raise downside risks to the near-term outlook for the economy, hinting that July's upturn may not be the start of an improving trend," he added.The S&P report said overall input cost inflation was the strongest since May 2025, due largely to higher energy and shipping costs, tariffs and other price rises.