Updated: 05-Aug-26 10:18 ET
Highlights
- The ISM Services PMI edged up to 54.1% in July (Briefing.com consensus: 54.7%) from 54.0% in June.
- The dividing line between expansion and contraction is 50.0%, so the July reading reflects services sector activity growing at roughly the same pace as the prior month.
- The Business Activity/Production Index increased to 59.1% from 55.4%.
- The New Orders Index rose to 57.2% from 55.1%.
- The Employment Index dropped to 47.4% from 51.2%.
- The Prices Index increased to 70.3% from 67.7%, marking the twentieth consecutive month above 60.0% and producing the highest 12-month average (68.1%) since April 2023.
- The Supplier Deliveries Index slipped to 52.8% from 54.4%.
- The Backlog of Orders Index fell to 50.9% from 54.9%.
- The key takeaway from the report is the understanding that services sector activity continues to run at a solid pace despite the persistence of ongoing cost pressures.
| Category | JUL | JUN | MAY | APR | MAR |
| Non-Manufacturing ISM index | 54.1 | 54.0 | 54.5 | 53.6 | 54.0 |
| Business Activity | 59.1 | 55.4 | 57.7 | 55.9 | 53.9 |
| New Orders | 57.2 | 55.1 | 57.3 | 53.5 | 60.6 |
| Employment | 47.4 | 51.2 | 47.9 | 48.0 | 45.2 |
| Deliveries (nsa) | 52.8 | 54.4 | 55.2 | 56.8 | 56.2 |
| Inventories (nsa) | 51.4 | 51.2 | 62.5 | 53.1 | 54.8 |
| Exports (nsa) | 52.0 | 50.4 | 50.0 | 52.1 | 50.7 |
| Imports (nsa) | 51.8 | 49.4 | 51.1 | 54.7 | 55.2 |
| Prices Paid | 70.3 | 67.7 | 71.3 | 70.7 | 70.7 |
