US services activity remained in steady expansion in July as new orders and
business activity recovered. The ISM services index rose 0.1 point to 54.1
(expansion >50); new orders accelerated and the business-activity gauge reached
a five-month high. Cost pressures intensified: the ISM input-price index jumped
to 70.3 in July after the collapse of a temporary US–Iran agreement pushed oil
and gasoline prices higher, and services and materials costs continued to rise.
The employment subindex showed the largest reduction in staff since March; with
elevated costs squeezing margins and weighing on consumer spending, some firms
hiring may be delayed.
