US Services PMI Edges Up to 54.1 as Employment Contracts and Prices Jump to 70.3
Updated
Updated · Action Forex · Aug 5
US Services PMI Edges Up to 54.1 as Employment Contracts and Prices Jump to 70.3
3 articles · Updated · Action Forex · Aug 5
Summary
July's ISM services PMI rose to 54.1 from 54.0, marking a 25th straight month of expansion and aligning with roughly 1.9% annualized real GDP growth.
The steady headline masked a split underneath: business activity accelerated to 59.1 and new orders to 57.2, while the employment index fell to 47.4 from 51.2, back into contraction.
Survey respondents linked weaker hiring to modest workforce cuts, AI adoption and shifts of jobs to lower-cost overseas locations, reinforcing softer ADP payroll signals earlier in the day.
Prices paid climbed to 70.3 from 67.7—the 110th consecutive month of rising input costs—leaving the Fed balancing resilient demand against cooling labor conditions and persistent inflation pressure.