New data shows US services activity flatlined in July

Recent data from the Institute for Supply Management (ISM) reveals that US services activity stagnated in July, indicating a slowdown in the robust growth observed earlier in the year. The Services PMI stood at 52.7, unchanged from June’s figure, as businesses reported mixed conditions with slower new orders and employment growth. Although readings above 50 indicate expansion, the lack of progress suggests that inflationary pressures and ongoing supply chain challenges continue to weigh on the service sector’s recovery. Economists note that consumer spending showed signs of hesitation amid higher interest rates and economic uncertainty. Despite these challenges, some industries such as healthcare and construction evidenced slight improvements. This data is critical for policymakers and businesses as they navigate the intricacies of the post-pandemic economic landscape. Analysts emphasize the need for sustained economic strategies to foster growth in the face of these evolving conditions.

Reuters