The Institute for Supply Management's (ISM) US services index rose to 51.4 for the month of July, above expectations of 51.0, alongside positive moves in services employment and inventory. Last week, S&P Global Services PMI (Purchasing Managers' Index) came below July expectations.
The Morning Brief's Seana Smith and Brad Smith break down the data prints.
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This post was written by Luke Carberry Mogan.
July US Services data, the ISM Index, that taking higher, at least from what was expected coming in at 51.4. That was above what the forecast have been expecting here. Business activity also rising during the month to 54.5. You got new orders also moving to the upside. Employment rising to 51.1, that was versus 46.1. You also have inventory changes. That rose actually to the upside. Prices paid also moving to the upside here. That was up to 57 flat versus 56.3. So again, when you take a look at US July US ISM services rising 51.4. That's coming in just above what the street have been expecting.
Yeah, the reading in July actually marking the fifth time that the composite index has been in expansion territory in 2024. Remember before April, the service sector that had grown for 15 straight months following a services PMI reading of 49%. That was back in December of 2022. The last contraction they noted before that was in May of 2020. 45.4% was the reading there. And so ultimately we do have a quote here as well on the prices index. That registered 57% in July. That was a 7/10 percentage point increase from June's reading of 56.3%. But 10 industries reporting growth in July, as the services PMI has expanded in 17 of the last 19 months. This dates back to January of 2023.
