FX.co ★ US Services Growth Below Forecasts in July

The ISM Services PMI in the United States inched up to 54.1 in July 2026 from 54.0 in June, remaining in expansionary territory but coming in slightly below market expectations of 54.5. The report signaled stronger growth in several key components: business activity accelerated (59.1 vs 55.4), new orders rose more rapidly (57.2 vs 55.1), and inventories increased at a slightly faster pace (51.4 vs 51.2). However, employment slipped back into contraction after just one month of expansion (47.4 vs 51.2).

Price pressures intensified (70.3 vs 67.7), with respondents again citing petroleum-related products and plastics as commodities experiencing price increases. At the same time, the number of commodities reported as declining in price rose to six, from three in the previous month. Backlogs of orders eased (50.9 vs 54.9), and supplier deliveries slowed (52.8 vs 54.4), indicating less strain in these areas.

“Tariff impacts and the Middle East conflict continued to be mentioned by respondents, but much less frequently than in prior reports. The World Cup was again cited in the comments regarding increased business activity and new orders,” said Steve Miller, Chair of the ISM.