Updated: 05-Aug-26 10:18 ET

July ISM Non-Manufacturing Index

Updated: 05-Aug-26 10:18 ET

Highlights

• The ISM Services PMI edged up to 54.1% in July (Briefing.com consensus: 54.7%) from 54.0% in June.
• The dividing line between expansion and contraction is 50.0%, so the July reading reflects services sector activity growing at roughly the same pace as the prior month.

Key Factors

• The Business Activity/Production Index increased to 59.1% from 55.4%.
• The New Orders Index rose to 57.2% from 55.1%.
• The Employment Index dropped to 47.4% from 51.2%.
• The Prices Index increased to 70.3% from 67.7%, marking the twentieth consecutive month above 60.0% and producing the highest 12-month average (68.1%) since April 2023.
• The Supplier Deliveries Index slipped to 52.8% from 54.4%.
• The Backlog of Orders Index fell to 50.9% from 54.9%.

Big Picture

• The key takeaway from the report is the understanding that services sector activity continues to run at a solid pace despite the persistence of ongoing cost pressures.

Category	JUL	JUN	MAY	APR	MAR
Non-Manufacturing ISM index	54.1	54.0	54.5	53.6	54.0
Business Activity	59.1	55.4	57.7	55.9	53.9
New Orders	57.2	55.1	57.3	53.5	60.6
Employment	47.4	51.2	47.9	48.0	45.2
Deliveries (nsa)	52.8	54.4	55.2	56.8	56.2
Inventories (nsa)	51.4	51.2	62.5	53.1	54.8
Exports (nsa)	52.0	50.4	50.0	52.1	50.7
Imports (nsa)	51.8	49.4	51.1	54.7	55.2
Prices Paid	70.3	67.7	71.3	70.7	70.7