The July ISM services index fell to 50.1 from 50.8, missing the estimate of 51.5. With many eyes on the labor market, the employment component fell to 46.4 from 47.2 – the second-lowest print since December 2023 and below 50 for the fourth month in the past five, notes Peter Boockvar, editor of The Boock Report.
New orders slipped by 1 point to 50.3 while backlogs remained well below 50. Inventories fell about 1 point to 51.8. Supplier deliveries rose a touch and remained above 50. But at 51, that reflects no real supply chain issues in terms of timing of deliveries post the tariff influences in the first half of 2025.
(Editor’s Note: Peter is speaking at the Real Estate Plays for Profit and Income Expo, scheduled for Aug. 19-20, 2025. Click HERE to register for a FREE pass.)
ISM Services Index
Prices paid rose to 69.9 from 67.5, the highest since October 2022. And I want to point out that imports fell to just 45.9 from 51.7, the lowest since June 2024, even as 75% of service provider respondents don’t use/track imported materials directly. One comment from someone who does: “Imports have increased in price, to be less competitive than domestic vendors.”
My bottom line? This index, which covers the biggest chunk of the US economy, has essentially flat-lined over the past three months – with a 49.9 print for May, 50.8 for June, and the July figure of 50.1.
