Key Metrics
20.61
Heat Index-
Impact LevelMedium
-
Scope LevelNational
-
Last Update2025-08-05
Key Impacts
Positive Impacts (2)
Negative Impacts (6)
Event Overview
The US services sector, a cornerstone of national economic output, demonstrated near-stagnant growth in July 2025, reflecting fragile expansionary momentum. Marginal activity increases highlighted vulnerability to broader macroeconomic pressures, raising concerns about sector resilience and overall economic health amid uncertain global conditions.
Collect Records
US Services Activity Flatlined in July, ISM Data Shows
In July 2025, US services sector activity showed virtually no growth, according to data released by the Institute for Supply Management (ISM). The ISM Services PMI® registered at 50.1, indicating that the sector—which is the largest component of the US economy—was close to stagnation. A reading above 50 signals expansion, while below 50 indicates contraction, so 50.1 reflects marginal growth.
The stagnation in services was accompanied by a contraction in employment within the sector, with businesses citing continued effects from trade tariffs influencing their operations. The report did not specify the precise degree of job losses but noted that employment levels shrank during the month. The ISM’s services index is generated from a survey of purchasing and supply executives across the country, collecting data on business activity, new orders, employment, and supplier deliveries.
Immediate consequences noted in the report included persistent caution among service providers due to tariff-related economic uncertainty. No verbatim quotes were provided in the summary available.