GLOBAL RESEARCH ARCHIVE
U.S. Data Pulse: July ISM Services PMI Accelerated Slightly
Research evidence excerpt
M
Update
August 5, 2026 02:29 PM GMT
Morgan Stanley & Co. LLC
U.S. Data Pulse | North America
Michael T Gapen
Chief US Economist
July ISM Services PMI
Accelerated Slightly
Lingdi Xu
Economist
Sam D Coffin
Economist
Key Takeaways
Diego Anzoategui
Economist
The July ISM Services Index rose slightly to 54.1, as business activity and new
orders strengthened, while employment and supplier deliveries softened.
Heather Berger
Economist
Activity and demand both accelerated strongly, rising above their 1H26 averages.
Employment weakened, pointing to softer labor demand across service-providing
Global Economist
sectors..
Arunima Sinha
Prices paid rebounded after decelerating in June, diverging from the
manufacturing PMI, which showed a deceleration in input cost pressures since
May.
Exhibit 1:
Services continue to expand, but its pace has slowed down gradually
ISM Services PMI
(sa, 50+
= expansion)
Service PMI
70
3-mo MA
65
60
55
50
45
40
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
Source: Institute of Supply Management, Haver Analytics, Morgan Stanley Research
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