The ISM Services PMI fell to 50.1 in July from 50.8 in June, indicating the sector remains in expansion but with slowing momentum. The index suggests a modest +0.5% annualized GDP growth.

• Business Activity eased -1.6 pts to 52.6, staying in expansion but slowing amid tariff-related buying and weather disruptions.
• New Orders fell -1.0 pt to 50.3, reflecting mixed demand across industries with defense strength but non-defense weakness.
• Employment declined -0.8 pt to 46.4, marking the second consecutive month in contraction as firms face hiring difficulties.
• Prices jumped +2.4 pts to 69.9, hitting the highest level since October 2022 amid broad-based input cost increases.
• Supplier Deliveries rose to 51.0 (+0.7 pts), indicating slightly slower delivery performance for the eighth month straight.
• Inventories edged down -0.9 pts to 51.8, still in expansion but with efforts underway to reduce stockpiles ahead of tariffs.
• Backlogs improved to 44.3 (+1.9 pts) but remained in contraction for the fifth consecutive month.
• New Export Orders dropped -3.2 pts to 47.9, the fourth monthly decline in 2025 amid geopolitical headwinds.
• Imports plunged -5.8 pts to 45.9, falling back into contraction territory on lower demand and rising costs.
• Inventory Sentiment decreased -3.9 pts to 53.2, the lowest since Oct 2024, though still reflecting excess inventory levels.