US services PMI rises to 51.4 in July

5th Aug 2024 15:54

(Sharecast News) - The Institute for Supply Management's services purchasing managers index rose to 51.4 in July, up from the more than four-year low of 48.8 recorded in June and ahead of market expectations for a reading of 51.

July's print seemingly pointed to a moderate rebound in US services activity last month, supported by a recovery in new orders from 47.3 to 52.5, increased business activity from 49.6 to 54.5 and a jump in order backlogs from 44 to 50.6.

Employment levels for service providers rose for the second time in 2024, up from 46.1 to 51.1, somewhat challenging weak jobs data released on Friday that reignited concerns that the US economy may be headed towards recession.

However, the ISM's price gauge still accelerated further to 57 from 56.3 due to higher costs in public administration services, accommodation and food services, finance, educational services, and healthcare.

Reporting by Iain Gilbert at Sharecast.com