U.S. July ISM Services - Employment highest since September
July’s ISM services index has recovered to a modestly positive 51.4 from June’s weak 48.8, easing some of the recession worries generated by Friday’s employment report. The ISM services employment index of 51.1, up from 46.1 in June, is actually the highest since September 2023.
The ISM data is still underperforming the S and P services PMI, though the latter has been revised down to 55.0, now slightly down from 55.3 in June, from a preliminary July reading of 56.0.
Three of the four components that make up the ISM services composite increased, in addition to employment, business activity rose to 54.5 from 49.6 and new orders rose to 52.4 from 47.3.
The exception was a dip in delivery times to 47.6 from 52.2, which suggests easing supply worries. The details of ISM services index, mostly higher but a lower deliveries index, is the opposite of the manufacturing detail, which was softer in most components but stronger for deliveries.
Prices paid saw a modest increase to 57.0 from 56.3 but continue to have very little direction.
