ISM Services PMI Rises to 54.1% as Hiring Slips — SkimNews
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- Institute for Supply Management Services PMI rose to 54.1% in July from 54.0% in June, marking the sixth consecutive month of expansion for U.S. service companies.
- The ISM prices index stayed above the critical 70% threshold for the fifth time in the past six months, signaling that input costs remain elevated for service-sector firms.
- Service-sector employment fell below 50% — its fourth contraction in five months — with most industries pulling back on hiring aside from healthcare providers.
- New orders rose and 13 of the 18 service industries tracked by ISM reported growth, pointing to continued momentum heading into the second half of 2026.
- Steven Miller, chair of the ISM Services survey, said the economy "continues to be resilient" but flagged that "concerns still exist" on inflation.
- The Dow Jones Industrial Average and S&P 500 both touched new record highs in Wednesday trading after the report's release.
- A senior construction industry executive told ISM there are "mounting cost pressures from all fronts," while a wholesale trade executive called business "more robust than expected."
Why it matters: The growing gap between expansion (>50) and hiring (<50) is the real signal: businesses are absorbing demand without adding workers. With the ISM prices index above 70% for the fifth time in six months and service-sector employment contracting in four of the past five months, the 'resilient' headline masks a labor market that's quietly deteriorating.
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