US ISM Services PMI Increases to 54.1 in July, Below Expectations Amid Weakening Employment

The US ISM Services PMI edged up to 54.1 in July 2026 from 54.0 in June, but fell short of economists' forecasts of 54.5. While business activity and new orders showed positive momentum, the employment component declined below 50, signaling a contraction in services sector employment. Prices paid, however, rose to 70.3 from 67.7, indicating continued inflationary pressures.