The ISM Services PMI rose to 52.0 in August 2025 (from 50.1 in July), signaling modest strengthening in services activity despite ongoing employment weakness and tariff-related pressures.

• Business Activity increased +2.4 pts to 55.0, staying in expansion for the 51st consecutive month and showing stronger momentum heading into the holiday season.

• New Orders jumped +5.7 pts to 56.0, reflecting faster demand growth, with some respondents noting activity tied to tariff-driven pre-buying.

• Employment remained in contraction at 46.5 (+0.1 pt), marking the third straight monthly decline and fifth in the past six months.

• Supplier Deliveries edged down -0.7 pts to 50.3, signaling slower delivery performance for the ninth consecutive month.

• Inventories rose +1.4 pts to 53.2, the third month of expansion, as firms built safety stock in anticipation of price increases.

• Inventory Sentiment increased +2.3 pts to 55.5, the 28th consecutive month of respondents reporting inventory levels “too high.”

• Prices stayed elevated at 69.2 (-0.7 pts), extending the streak above 60 for nine months and showing continued cost pressures.

• Backlogs contracted sharply to 40.4 (-3.9 pts), the lowest since May 2009, marking the sixth straight month in contraction.

• New Export Orders fell -0.6 pts to 47.3, the fifth contraction in 2025, with mixed reports of overseas demand.

• Imports surged +8.7 pts to 54.6, rebounding into expansion for the first time since May and reaching the highest level since January 2024.