US EditionUS services activity flatlined in July, ISM data shows
UNITED STATES, AUG 5 – The ISM nonmanufacturing PMI edged down to 50.1 with employment falling to its lowest since March as tariffs raised input costs to the highest in nearly three years.
- The US services sector unexpectedly stagnated in July, with the ISM nonmanufacturing PMI slipping to 50.1 from June's 50.8, indicating minimal growth.
- This slowdown followed weak employment data released Friday and escalating tariff-related uncertainties, including import tax notices issued ahead of an August 1 deadline.
- Survey respondents cited delayed purchasing plans due to tariff impacts and rising input costs, while export orders returned to contraction and employment contracted for the second month.
- Steve Miller described the ongoing decline in employment and the increase in input costs as concerning trends, pointing out that tariffs are negatively affecting international trade, while the indicator measuring supplier prices reached its highest level in nearly three years.
- The Federal Reserve maintained rates at 4.25%-4.50% last week, with some governors citing job market risks, and policymakers weighing inflation concerns amid a gradually slowing economy.
24 Articles
24 Articles
US services activity flatlined in July, ISM data shows
U.S. services sector activity unexpectedly flatlined in July with little change in orders and a further weakening in employment even as input costs climbed by the most in nearly three years, underscoring the ongoing drag of uncertainty over the Trump administration's tariff policy on businesses.
Services sector slows down in July
Economic activity in the services sector fell back modestly in July as businesses held off on making purchases amid policy uncertainties. The Institute for Supply Management’s purchasing manager’s index dropped 0.7 percent from June to reach a series level of 50.1 percent in July, just slightly above the break-even level of 50 percent, below which…
US services sector misses expectations, tariff concerns hurt growth in July
The US services sector activity slowed in July due to factors such as US tariffs and global trade tensions. The employment index also remained in the contraction territory for the second straight month.
Does the Fed Need to Cut Now? Bitcoin Crumbles Back Below $113K After ISM Services PMI
Adding to the shocking downward jobs growth revisions on Friday — which sent crypto prices tumbling — the ISM Services PMI all of a sudden is beginning to consistently indicate softer-than-thought economic activity.The ISM Services for July came in at 50.1, sizably lower than the 51.5 expected. A number above 50 indicates economic expansion, and below that level contraction.The soft print is notable as it's now a three-month pattern of weakness,…
Bankinter Market Consensus The ISM Services Disappointed in July 50.1 (vs 51.5 expected and 50.8 ant).Paid Prices went up to 69.9 (vs 66.5 expected and 67.5 ant.), New Orders down 50.3 (vs 51.3 ant) and Employment dropped to 46.4 (vs 47.2 ant.). Bankinter's analysis team opinion: The market continues to anticipate that the Fed will lower rates at its next Sept-25 meeting. In line with the weak unemployment data from last Friday, [...]
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