The activity in the United States services sector rose in July, as the Services Purchasing Managers' Index (PMI) went up from the previous month's 48.8% to 51.4%, entering the expansion territory, the Institute for Supply Management (ISM) said in its report published on Monday.
The Business Activity Index grew by 4.9% month-on-month to 54.5%. The New Orders Index jumped by 5.1% over the same period to 52.4%. The Employment Index increased by 5.0% to 51.1%, and the Inventories Index by 6.9% to 49.8%. On the other hand, the Inventory Sentiment Index declined by 0.9% to 63.2%.
"Survey respondents again reported that increased costs are impacting their businesses, with generally positive commentary on business activity being flat or expanding gradually. Comments continued to express a wait-and-see attitude regarding the upcoming presidential election, with one respondent expressing concern over potential increases in tariffs," ISM Services Business Survey Committee Chair Steve Miller said.
