The services sector index continues to expand
The Institute for Supply Management said that the Purchasing Managers’ Index for the services sector rose by 0.1 point during July to reach 54.1 points.
Any reading above the 50-point level indicates a continued expansion of economic activity, reflecting that the largest U.S. economy sectors remain in the growth zone.
This performance confirms the ability of the services sector to sustain its momentum despite ongoing economic pressures and higher operating costs.
New orders and business activity drive growth
Data showed an acceleration in the growth of new orders, while the business activity index rose to its highest level in 5 months.
This points to continued strength in demand from consumers and businesses, which helped the services sector maintain a stable pace of growth during July.
However, companies continued to face pressures caused by rising service and raw material costs, which limited their full benefit from the improvement in demand.
Rising prices weigh on companies
The Institute for Supply Management’s prices paid index jumped to 70.3 points in July, after the collapse of the interim agreement between the United States and Iran led to higher oil and gasoline prices.
This increase reflects the persistence of inflationary pressures on companies, especially with higher energy costs
The Institute for Supply Management said that the Purchasing Managers’ Index for the services sector rose by 0.1 point during July to reach 54.1 points.
Any reading above the 50-point level indicates a continued expansion of economic activity, reflecting that the largest U.S. economy sectors remain in the growth zone.
This performance confirms the ability of the services sector to sustain its momentum despite ongoing economic pressures and higher operating costs.
New orders and business activity drive growth
Data showed an acceleration in the growth of new orders, while the business activity index rose to its highest level in 5 months.
This points to continued strength in demand from consumers and businesses, which helped the services sector maintain a stable pace of growth during July.
However, companies continued to face pressures caused by rising service and raw material costs, which limited their full benefit from the improvement in demand.
Rising prices weigh on companies
The Institute for Supply Management’s prices paid index jumped to 70.3 points in July, after the collapse of the interim agreement between the United States and Iran led to higher oil and gasoline prices.
This increase reflects the persistence of inflationary pressures on companies, especially with higher energy costs