Updated: 05-Aug-25 10:20 ET

July ISM Non-Manufacturing Index

Updated: 05-Aug-25 10:20 ET

Highlights

• The ISM Services PMI decreased to 50.1% in July (Briefing.com consensus 51.5%) from 50.8% in June.
• The dividing line between expansion and contraction is 50.0%, so the July reading reflects services sector activity teetering on the brink of a contraction.

Key Factors

• The Business Activity/Production Index decreased to 52.6% from 54.2%.
• The New Orders Index fell to 50.3% from 51.3%.
• The Employment Index dipped to 46.4% from 47.2%.
• The Prices Index rose to 69.9% from 67.5%.
• The Supplier Deliveries Index jumped to 51.0% from 50.3%.
• The Backlog of Orders Index increased to 44.3% from 42.4%.

Big Picture

• The key takeaway from the report is that it reflects a slowdown in growth for the country's largest sector, accompanied by a faster contraction in employment and a faster increase in prices. It is a combination that will provoke stagflation chatter.

Category	JUL	JUN	MAY	APR	MAR
Non-Manufacturing ISM index	50.1	50.8	49.9	51.6	50.8
Business Activity	52.6	54.2	50.0	53.7	55.9
New Orders	50.3	51.3	46.4	52.3	50.4
Employment	46.4	47.2	50.7	49.0	46.2
Deliveries (nsa)	51.0	50.3	52.5	51.3	50.6
Inventories (nsa)	51.8	52.7	49.7	53.4	50.3
Exports (nsa)	47.9	51.1	48.5	48.6	45.8
Imports (nsa)	45.9	51.7	48.2	44.3	52.6
Prices Paid	69.9	67.5	68.7	65.1	60.9