Summary
- It was reported that the US July ISM Services PMI was 50.1, falling short of both forecasts and the previous month.
- The ISM stated that employment contraction and rising prices are cause for concern.
- It was added that the shift to contraction in both export and import indexes demonstrates the impact of tariff tensions on global trade.
The US ISM Services Purchasing Managers’ Index (PMI) for July came in below expectations.
On the 5th (local time), the Institute for Supply Management (ISM) in the US released the Services PMI report, which showed that the July Services PMI was 50.1, lower than both the forecast (51.5) and the previous month (50.8). However, it still slightly exceeded the baseline of 50, marking two consecutive months of expansion.
The ISM stated, “The July Services PMI still reflects slow growth,” and explained, “Employment contraction and rising prices are worrisome signs.” It added, “Both the Export and Import Indexes turning contractionary shows that tariff tensions are negatively affecting global trade.”
Meanwhile, the ISM conducts a monthly survey of 400 companies across 20 industries to calculate the PMI, which evaluates manufacturing activity. If the index is above 50, it means more respondents expect economic expansion, while below 50 indicates more expect contraction.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
