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The US services sector bounced back in July on stronger business activity, new orders and employment, according to survey data released Monday.
The Institute for Supply Management’s (ISM) services index stood at 51.4 percent last month, up from 48.8 percent in June.
The number was slightly above the analyst consensus forecast of 51.3 percent according to Briefing.com, and above the 50-point threshold separating growth from contraction.
“Economic activity in the services sector expanded in July, a trend that has been interrupted only three times — though twice in the last four months — since early in the coronavirus pandemic,” said the ISM report.
“Survey respondents again reported that increased costs are impacting their businesses,” said ISM survey chair Steve Miller.
Miller added: “Comments continued to express a wait-and-see attitude regarding the upcoming presidential election, with one respondent expressing concern over potential increases in tariffs.”
In July, the business activity index rose 4.9 percentage points to 54.5 percent, while the new orders index picked up 5.1 percentage points to 52.4 percent.
Meanwhile, the employment index, up five percentage points to 51.1 percent, expanded for the second time in 2024, ISM added.
Ten services industries reported growth, while eight reported a decrease.
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