U.S. ISM Services Index Rises 0.1 to 54.1 in July

ISM Services Index hits 54.1, marking stable expansion with new order growth. However, input costs surge to 70.3, squeezing margins and potentially delaying hiring.

Woofun AI data shows that the U.S. service sector maintained stable expansion in July, as the ISM Services Index increased by 0.1 points to 54.1. New order growth accelerated and the business activity index reached a five-month high, reflecting resilient consumer demand.

Conversely, service and material costs continued to climb, with the ISM Input Cost Price Index rising to 70.3. This cost inflation pressures corporate profits and may lead some firms to delay hiring plans.